Don’t Be Scared That It’s Financial Planning Month!

When October rolls around, are you starting to think about the upcoming holiday season and how you are going to afford gifts, family meals, and all the fun that comes with it? October is Financial Planning Month, which is the perfect time to take a look at your current spending habits and begin to prepare for the last few months of the year! Financial planning doesn’t have to be scary – below are some examples of things to do to take the spookies out of Financial Planning Month!

 

Your Saving & Spending Plan: Understanding how much money you have coming in each month vs. how much you have going out can be a great way to pinpoint adjustments you can make to save additional funds. Oftentimes looking at your expenses on paper can help you find things such as subscriptions or unneeded monthly fees that can be cancelled for extra savings.

Check out our free Savings/Spending Plan Tool to help start your budget!

 

Understand Your Debts: There are many different types of debts out there – and between different minimum payments, interest rates, and due dates it can be hard to understand how much and where your money is going every month to repay them. Aside from the amount of money you spend each month on these debts, it’s also important to know your debt rate (also known as your debt-to-income ratio) when it comes to things like applying for a new loan or mortgage. Take some time to sit down and list out all the debts you currently owe to see where you may be able to consolidate or reduce rates. Getting a clearer picture of how much you owe and better understanding of your debts and how much you pay will help you make informed choices in your financial planning.

Download our Summary of Debt Tool or Summary of Monthly Debt Tool!

 

Insuring Your Assets: Another critical part of financial planning is ensuring that you have insurance that adequately covers your most important assets. In addition to legal obligations of being an insured driver, you may opt for full coverage on a vehicle that you lease or are making payments on. Homeowner’s insurance is extremely important, but so is renter’s insurance even if you don’t own a home. If you have dependents, life insurance is a good idea to ensure they are taken care of should the worst happen to you. Take some time to evaluate what types of insurance you may need and in what amounts, as well as what you can afford, as part of your financial planning.

 

Make an Action Plan: Now that you have taken some time to establish your monthly spending plan and evaluate your monthly debts, setting up an action plan on for how to adjust spending or increase savings would be your next step. The action plan can help you outline steps to take to accomplish things like:

• Decrease monthly payments through debt consolidation
• Increase your savings with weekly or monthly contributions
• Find lower interest rates on existing debts
• Identify and fill any gaps in insuring your assets

Click here to download your Financial Fitness Action Plan!

This may sound daunting, but it doesn’t have to be! Our staff are Certified Credit Union Financial Counselors who are able to assist you in financial planning! Contact us today to get started.