Preparing for Year-End Financial Goals & Holiday Budgeting

As the last quarter of the year approaches, it’s the perfect time to reassess your financial goals and start planning for the upcoming holiday season. The months between September and December tend to be some of the busiest for our personal finances—whether it’s holiday shopping, travel, or unexpected year-end expenses, the demands on your budget can start to pile up quickly.

This blog post will guide you through the steps you need to take to review your financial goals, plan for the holidays, and prepare yourself for a financially strong finish to the year. Let’s dive in!

1. Review Your Year-End Financial Goals

September is the perfect time to pause and review the financial goals you set at the beginning of the year. Whether your focus was on saving, reducing debt, or growing investments, the key to success is revisiting those goals and adjusting your approach if needed. Here are a few questions to ask yourself:

• Am I on track to meet my savings goals?
  Take a look at your savings accounts. Are they where you want them to be? If not, consider reallocating funds or cutting back on unnecessary expenses over the next few months.
• How has my debt reduction plan gone?
  Debt payoff can take time, but small wins along the way are critical. Assess whether you’re making significant strides, and if not, brainstorm ways to accelerate your debt reduction in the last quarter. Can you add extra payments to your credit cards or loans?
• Did I meet my investment goals?
  Look at your investment portfolio. Did you increase your retirement contributions this year? Have you added more to your stock portfolio or real estate investments? If not, this is a good time to realign and finish the year strong.

Action Steps:

• Set up an end-of-year money review. Take 30 minutes to look over your current financial standing and your 2024 goals. Adjust any goals that seem out of reach and prioritize those that still feel attainable.
• Consider reallocating funds or creating a savings challenge to give you an extra financial boost. For example, a “no-spend September” could help funnel unused money directly into savings or debt payoff.
• If you haven’t started saving or investing this year, start now. It’s never too late to begin.

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2. Holiday Budgeting

The holiday season is a joyful time, but it’s also notorious for wrecking people’s budgets. Between gifts, travel, and celebrations, it’s easy to spend far more than anticipated. That’s why September is the ideal time to start budgeting for the holidays. By planning early, you can avoid debt, stress, and the typical post-holiday financial hangover.

Here’s how to create a solid holiday budget:

• Set Spending Limits: Establish how much you can realistically afford to spend on gifts, travel, entertainment, and food. Assign a budget to each category. Be honest—overspending in one area (like gifts) often means you’ll end up cutting corners in others.
• Make a Gift List: Write down everyone you plan to buy gifts for this year. Next to each name, jot down a price limit. Having a plan will keep you from impulse buying and overspending.
• Start Saving Early: If you haven’t already, now is the time to create a holiday savings fund. Break down how much you’ll need for all your expenses and divide that by the number of paychecks left before the holiday season. This will give you a target savings amount for each paycheck.
• Avoid Last-Minute Shopping: Waiting until December often results in rushed decisions and overpaying for gifts. Shopping in September and October will allow you to take advantage of sales and discounts.
• Consider Experiences Over Material Gifts: Rather than giving expensive gifts, consider gifting experiences—such as a cooking class or a day trip—especially if you’re trying to stay within a tight budget.

Action Steps:

• Create a holiday budget template with categories for gifts, food, decorations, and travel. Start allocating money to each category in September.
• Begin holiday shopping early to take advantage of discounts and sales.
• Set up a dedicated savings account specifically for holiday expenses. Automate contributions with each paycheck.
• Get my free holiday planner here.

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3. Emergency Fund Check-In

The holiday season tends to come with unexpected expenses—whether it’s a surprise family visit, car trouble, or an urgent home repair. That’s why having an emergency fund in place is so crucial.

An emergency fund helps reduce stress when those unexpected moments hit, allowing you to cover expenses without dipping into credit cards or depleting your holiday budget.

How Much Should Be in Your Emergency Fund?

Financial experts typically recommend having three to six months of living expenses in your emergency fund. If that feels daunting, focus on building up at least $1,000 to start. Even a small emergency fund can help prevent financial derailment during the holiday season.

Action Steps:

• Evaluate your current emergency fund. Is it sufficient to cover an unexpected holiday or year-end expense?
• If not, make a plan to add to it throughout September and beyond. Even small, consistent contributions can make a difference over time.
• Consider setting up automatic transfers into your emergency fund to ensure it grows without much effort.

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4. Tax Planning

It’s never too early to start thinking about taxes. By planning ahead in September, you can avoid the typical rush to gather documents and meet deadlines at the end of the year. This is especially important if you’re a small business owner, freelancer, or anyone with complex financial situations.

Tax Tips for September:

• Maximize deductions: Review potential tax deductions and credits you may qualify for, such as charitable contributions, business expenses, or energy-efficient home improvements.
• Organize your financial documents: Start gathering receipts, invoices, and other documentation for deductions or write-offs.
• Check your withholding: If you’re employed, verify whether you’re having the right amount of tax withheld from your paycheck. Use the IRS tax withholding calculator to make adjustments if necessary.

Action Steps:

• Make a list of potential tax deductions and credits. Organize your receipts and financial documents now to save stress later.
• If you’ve had a significant life change this year (such as marriage, buying a home, or having a child), consider consulting a tax professional to adjust your tax strategy.

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5. Year-End Financial Clean-Up

As the year comes to a close, it’s time for a financial clean-up. This involves going through your expenses, reviewing subscriptions, and organizing your finances for a fresh start in the new year.

Things to Review:

• Subscriptions: Are you paying for services you no longer use? Cancel any subscriptions that aren’t bringing value to your life.
• Insurance Policies: Review your auto, home, and health insurance policies to see if you’re getting the best rates. Consider switching providers if better rates are available.
• Utilities and Bills: Check for better rates on utilities, such as electricity, gas, and internet services. Sometimes a simple call to your provider can result in a discount or promotion.

Action Steps:

• Create a list of all recurring expenses (subscriptions, insurance, utilities) and review them for potential savings.
• Take action by canceling unnecessary services or switching to more affordable providers where possible.

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Wrap-up

September is a pivotal month for your personal finances. By taking the time to review your year-end financial goals, set up a holiday budget, boost your emergency fund, plan for taxes, and clean up your expenses, you’ll be positioning yourself for a stress-free and financially sound holiday season.

The key to success is starting early. Don’t wait until December to get your finances in order—begin now so you can enjoy the holiday season without the financial burden.

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Ready to take control of your finances?

If you’re feeling overwhelmed with how to navigate your financial journey, consider scheduling a free discovery call with me. Whether it’s tackling your budget or creating a plan to meet your year-end goals, I’m here to help. Let’s work together to finish the year strong and set you up for success in the new year!