October is Financial Planning Month!

This month, take a moment to glance at your finances. Do you have a plan for your future? If not, we are here to help you plan. In this blog, we will break down the steps for creating a great financial plan to set you up for success.

Set Clear Financial Goals

Do you know what your financial goals are? Do you know how to achieve those goals?

Setting goals is a crucial first step to planning for your future. You need to know what you want to plan for and what you want your financial situation to be. Whether you want to grow your savings, pay off loans, save for retirement, or invest in your dream home, setting goals is essential.

Once you have set your goals, you can begin to focus on achieving them.

Review Your Current Situation

Now that you know what you want to achieve, it’s important to understand your current financial situation to assess your next steps.

Review your earnings, expenses, debts, and investments. Create or update your budget, evaluate your net worth, and consider the broader picture. Work with a financial advisor to identify areas of weakness and opportunities for improvement.

You know your financial situation and goals, now it’s time to take action!

Budgeting

October is a great time to start budgeting with the holidays right around the corner.

By planning a monthly budget, you never have to stress when rent or bills are due. You’ll always know how much money you have and what you can afford for that month.

It’s ideal to start by subtracting expenses from your monthly income. Begin with necessary expenses, such as rent, bills, and car payments, and then budget for things you want, like entertainment, dining out, and shopping.

Tax Planning

October is an ideal time to start considering tax planning as the year draws to a close. Together with your CPA and financial advisor, run tax predictions and brainstorm ways to reduce your tax liability. When tax season arrives, you may save a lot of money by being proactive with your tax planning.

Retirement Planning

It’s never too early to start planning for retirement. In fact, retirement planning is a critical aspect of financial planning, and October serves as a great reminder of that.

Take some time this month to evaluate your contributions for the year and note any changes you can make for the following year.  Your contributions should, at the very least, be enough to maximize your employer's match.

Financial Planning Month is a great reminder to review your finances and plan for the future. By planning, you can more easily achieve your financial goals and dreams. If you have any questions, check out GreenPath Financial Wellness. As a member, you can receive free one-on-one financial counseling and more!