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October is National Financial Planning Month | Tips From our Advisors on How to Finish the Year Strong Thumbnail

October is National Financial Planning Month | Tips From our Advisors on How to Finish the Year Strong

October is National Financial Planning Month and it’s a great time to think about your finances and how you can budget to make the most of your holiday season. Take some time this month to assess your finances and learn how proper financial planning can make a difference in your life. Check out these tips from our advisors to get you started in your planning:

Create a Budget

One of the most important and helpful things you can do for yourself is to create a budget and stick to it. Budgets can vary from person to person depending on expenses and income, however the 50/30/20 rule is a good place to start. 50 percent of your budget should go toward the essential things in your life like food, rent and utilities. 30 percent of your budget should go toward your wants like a taking a trip somewhere or buying a new outfit. The last 20 percent of your budget should be dedicated toward your savings and paying of any debt you may have.

This time of year, its also a good idea to be budgeting and saving for the holidays. If you save a small amount from each paycheck now and budget how much you want to spend on your loved ones, the holidays will be less likely to put you into debt.

Revisit and Assess Your Goals

Revisit the goals you set for yourself at the beginning of the year and assess the progress you have made. Did you reach any of them or fall short on some? Its important to be honest with yourself as it will help you create strong goals for next year. After assessing your progress, make a plan for how you can achieve your financial goals in the last few months of this year.

If you didn’t get a chance to set goals for yourself at the beginning of the year, it’s never too late! Make some goals now for how you want to finish the year financially.

To judge how you are doing financially this year, ask yourself these tough questions and reflect on your answers.

  • Did I increase my net worth this year?
  • Did I reduce my debt, if applicable?
  • Did I save and invest according to my financial plan?
  • Did I achieve my short-term and long-term financial goals?
  • Did I maintain an emergency fund?
  • Did I contribute to my retirement accounts?
  • Did I manage to stay within my budget and control my spending?
  • Did I make progress toward achieving financial independence?

Be Mindful When It Comes to Debt

Not all debt is “bad” if you’re smart with it. In fact, a lot of times, taking on some debt and making all payments on time is a great decision and can help you build up your credit score. For example, taking out a loan on a car is a wonderful option if you don’t have enough money to buy it up front. Just be sure that the monthly payments fit in your budget and make sure you are wary of high interest rates that could cause issues if you are not careful.

Get Covered by Insurance

One final way to celebrate Financial Planning Month is to ensure that you are properly covered with the right insurance. If you have dependents or people relying on your income, life insurance is extremely important. Life insurance can ensure that the people you love will be taken care of if something were to happen to you. In addition, you should consider renters or homeowners insurance, car insurance, disability insurance, and health insurance.

Things to look for when choosing a life insurance policy

There are several different steps you can take to check in on your finances and plan to finish this year strong. Start celebrating National Financial Planning month and talk to an advisor today!

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Tips for Gaining Control of your Finances

 

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

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