4 Financial Checks to Make Before October Ends (Holiday Budget Edition)

👋 Hey, it's Travis

I was talking to a friend recently and she mentioned she feels behind with less than 3 months left in the year. October just started and she's anxious - the holidays feel close, spending is coming, there are forms at work she hasn't touched, and she hasn't looked at any of the numbers yet.

I asked her: "Have you actually run the numbers though?"

She hadn't. She's been avoiding them.

It's easy to let financial uncertainty build into something much bigger than it needs to be. When you don't know what's in your savings account, how much debt you have, or what you can afford to spend, it's hard to know where to start.

But once you have the actual numbers in front of you, you can turn that uncertainty into a list of things you can work on.

Three months is still plenty of time to make meaningful progress.

This week's Money Monday is four things worth checking before October ends.

🎁 1. Set Your Holiday Spending Number

Most people don't set a holiday spending number before they start spending. They have a vague sense of reasonable and then react to each purchase.

By the time anyone adds it all up, it's January.

The number isn't just gifts. It's travel, events, holiday meals, work party contributions, wrapping, and shipping. It's the extra grocery runs. The online orders with $15 shipping you didn't see coming.

When you add everything together, the total can be quite a bit higher than you expected.

Before November arrives, take 15 minutes to make a list of everything you expect to spend money on this holiday season. Give each category a realistic budget and add it all up.

And if you want some help tracking all your gift spending - we have our Christmas Gift Tracker here. I know it's a bit early but feels worth mentioning.

💸 2. Check Your Tax-Advantaged Account Headroom

October is a good time to review your accounts and see whether you're still on track with your financial goals.

Here are three things worth checking.

Are you on track with your contributions?

If you planned to contribute a certain amount this year, check how much you've actually contributed so far. A job change, a temporary pause, or an unexpected expense can throw off your original plan.

You still have time to adjust your contributions before the end of the year, if that makes sense for your situation.

Are there any accounts you've been meaning to consolidate or transfer?

Old employer retirement plans, investment accounts, and other financial accounts can be easy to forget about.

If you've been putting off a transfer or consolidation, now is a good time to look into it.

Are your beneficiaries up to date?

Marriage, a new child, or a change in family circumstances can mean it's time to review your beneficiary designations.

It only takes a few minutes to check, but it's an important part of keeping your financial affairs organized.

Remember that contribution deadlines and rules vary by account and country, so check the rules that apply to you before making year-end decisions.

📷 3. Audit Your Subscriptions Before the Holidays Take Over

Once November hits, your attention is likely to shift toward holiday shopping, travel, and everything else that comes with the season. That's why October is a good time to take a look at your recurring expenses.

Check your bank and credit card statements and look for anything recurring. Then ask two questions for each one: am I actually using this, and is it worth keeping? That's the whole audit.

Cancel what you're not using. Keep what you are. We went over this in our spring-cleaning issue, but that was six months ago and I think running this at least twice a year is worth it.

It takes 20 minutes and it's the kind of thing that feels good to have done before the year gets busy.

💳 4. Debt and Sinking Funds - The Honest Gut Check

Now it's time to put your holiday spending number from Section 1 into context.

Before the holiday season adds to your expenses, take an honest look at where your finances stand today.

Start with two things:

• Your current debt balances and interest rates
• The amount you've already saved specifically for holiday spending

Now compare your holiday budget with the money you actually have available. Let's say you've budgeted $1,200 for the holidays but have only saved $400. That leaves an $800 gap.

You have two options: reduce your spending or make a realistic plan to cover the difference.

What you don't want is to put the entire shortfall on a credit card without a plan to pay it off. Carrying high-interest holiday debt into the new year can make an already expensive season even more costly.

And if you have existing debt, the next three months give you an opportunity to make some progress before January. Even modest additional payments can help, depending on your balance and interest rate.

The important thing is to make a plan based on what you can actually afford, rather than hoping everything works out in December.

✅ Money Moves to Make This Week

🎯 Action 1: Write your actual holiday spending number before you buy anything (15 minutes)

Full list - gifts, travel, events, meals, shipping, anything holiday related. Add it up. Check it against what's in your sinking fund or savings buffer. Note the gap and devise a strategy to fill it or reduce it.

🎯 Action 2: Log into your tax-advantaged accounts and check year-to-date contributions (15 minutes)

Check your contributions, review any outstanding transfers, and make sure your beneficiary information is up to date. Pay attention to any deadlines that apply to your accounts.

🎯 Action 3: Quick subscription audit (20 minutes)

Check over your recurring expenses on your credit card then ask the two questions: am I using it and is it worth keeping? Make a decision to cut it out or keep it.

💬 Fund(amental) Quote of the Week

Take a few minutes to look at the numbers. You might discover that things are more manageable than you thought. And if they're not, at least you'll know what needs your attention.

Until next Monday,

Travis