Fall is the perfect time for a financial reset

Every January, millions of Americans make resolutions to get their finances in better shape. They create budgets, promise to save more and make plans to finally pay down debt. But I’d argue fall is an even better time for a financial reset.

Back-to-school spending is winding down, while holiday shopping and year-end expenses haven’t yet hit their peak. That makes fall a valuable window to take stock of where your money is going, make a few adjustments and prepare for what’s ahead.

As a father of two young children, ages 5 and 6, I know how quickly expenses can pile up this time of year. School supplies and fees, childcare and activities compete with everyday bills. Before long, we’ll add holiday gifts and travel to the list.

That’s why the first step toward a financial reset is knowing where you stand. Sit down, look through your bank and credit card statements and write down what you’re spending. You might be surprised by what you find. My family once discovered we were paying for three Amazon subscriptions. From streaming services to unused memberships, small recurring expenses can add up quietly. Identifying and eliminating even a few creates room for more important priorities.

If you’re carrying high-interest debt, look there. Credit card interest can make it extremely difficult to get ahead, particularly when everyday expenses are already rising. Consider strategies such as the debt snowball, which focuses on paying off your smallest balances first, or look into whether consolidating or transferring balances could reduce the interest you’re paying. Some credit cards offer introductory 0% balance-transfer periods, for example, though it’s important to understand the fees, terms and interest rate that will apply afterward.

Still, don’t overlook savings. A common recommendation is to eventually build an emergency fund covering three to six months of necessary living expenses. That can sound impossible if you’re starting from zero, so don’t let the size of the ultimate goal prevent you from starting. Set an attainable first milestone and make consistent progress towards it.

One helpful framework is the 50/30/20 approach: roughly 50% of income for needs, 30% for wants and 20% for savings and financial goals. Those percentages won’t work perfectly for every household, but the underlying principle matters: save intentionally rather than waiting to see what’s left at the end of the month.

Fall is also a good time to look ahead. What expenses will arrive between now and January? Holiday gifts are obvious, but there may also be travel, annual bills such as property taxes or HOA payments, insurance costs, school expenses, home or vehicle maintenance and other purchases. Writing those expenses down now gives you time to save, compare prices and watch for sales instead of making last-minute purchases with a credit card.

Most importantly, set goals. They don’t all have to be about sacrifice. A short-term goal might be establishing an emergency fund or paying off a credit card. A longer-term goal could be saving for your child’s education, buying a home or taking the family to Disney World. Breaking those goals into smaller, incremental steps makes them easier to pursue.

And don’t be afraid to ask for help. You don’t need to be wealthy to talk with someone about your finances. A trusted financial professional can help you understand your options, set priorities and develop a clearer picture of where you’re headed.

Those conversations can start early, too. My wife and I have two little ones beginning their own journeys with money, and we have an opportunity to teach them about saving, spending and making important choices. Financial confidence is something we can build as families.

September doesn’t come with the pressure of a New Year’s resolution. And that may be exactly why it works. Take an hour this fall to review your finances, choose two or three things you want to improve and map out the next few months’ spending. By the time January arrives, you’ll be a quarter of the year into your financial resolutions. 

Zachary Gay is vice president of performance and operations at Everwise Credit Union. 

The information provided is for educational purposes only. The views and opinions expressed are solely those of the author. This information should not be considered to constitute financial, tax, legal, or accounting advice or recommendations. Please consult with an attorney, financial or tax professional for guidance.