As October comes to a close, this is a good time to reflect on your finances. October is not only a month for Halloween and fall but also Financial Planning Month. This time of year is important to reflect on your current financial situation and plan for the future. Studies indicate spending time understanding your finances leads to a successful financial future. Here are three aspects to review when looking at your finances.
- Review your budget. Look over your budget for the past six months. Consider the following questions: Did you overspend in certain areas? Did you save in certain areas? Is there an area you can cut back? By reviewing and adjusting your budget, it can lead to financial success. Your budget should align with future goals such as buying a house, car, or investments.
- Plan for holiday and emergency spending. October is the start of discussing the impending holiday season. Thus, this is a good time to look at a budget for holiday shopping. Additionally, it is critical to look at a budget for emergencies. This can be beneficial if money is needed for an unexpected situation. Experts suggest having 3-6 months of bills saved in an emergency savings account.
- Explore investment opportunities. Learning about different ways to invest money can help you grow your money long term. When reviewing financial planning, consider how different investments will help for retirement and long-term goals. Believe & Inspire offers programs to help further your understanding.
Dedicating time to reviewing finances is an investment in your financial future. There are several important aspects to consider when reviewing your finances like retirement, current spending, future goals, and debts. These aspects can impact your budget and need to be reviewed biannually.
Believe & Inspire is committed to helping you achieve your goals through our programs. In our programs, you can learn more specifically about managing finances and other steps you can take to achieve your goals. You can find more information on our website under programs.