As the seasons change and we enter the final quarter of the year, October is a great time to take stock of your finances and make sure you’re on the right track. By following this October financial checklist, you can proactively manage your money and set yourself up for year-end.
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Review Your Budget:
Take some time to review your budget for the year. Look at your income and expenses to see where you stand. Make adjustments as needed to ensure you’re on track to meet your financial goals for the year.
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Check Your Credit Score:
Pull your credit report and check your credit score. Look for any errors or discrepancies that need to be addressed. A good credit score is crucial for obtaining loans, mortgages, and even some job opportunities.
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Evaluate Your Investments:
Review your investment portfolio and assess its performance. Consider rebalancing your portfolio if necessary to align with your long-term financial goals. Seek advice from a financial advisor if you’re unsure about your investment strategy. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
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Plan for Year-End Expenses:
Start planning for any year-end expenses, such as holiday gifts, travel, or home maintenance. Setting money aside now can help you avoid financial stress later on. Consider creating a separate savings fund for these expenses.
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Maximize Retirement Contributions:
If you have a retirement account, such as a 401(k) or IRA, consider maximizing your contributions for the year. Take advantage of any employer matching contributions and boost your retirement savings wherever possible.
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Review Insurance Policies:
Review your insurance policies, including health, auto, home, and life insurance. Make sure you have adequate coverage and that your policies reflect any changes in your circumstances. Shop around for better rates if needed.
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Create a Holiday Budget:
Start planning your holiday budget now to avoid overspending during the festive season. Set a spending limit for gifts, travel, and entertaining, and stick to it. Consider alternative gift-giving ideas to save money.
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Set Financial Goals for the New Year:
Use October as a time to reflect on your financial goals for the upcoming year. Whether it’s saving for a major purchase, paying off debt, or increasing your emergency fund, set clear and achievable goals to work towards in the year ahead.
By following this October financial checklist, you can take control of your finances and make informed decisions to help secure your financial future. Remember, small steps now can lead to significant benefits down the road. Start today and plan for tomorrow.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.
