We generally associate October with the leaves changing, cooler temperatures rolling in, and children dressing up and eating their weight in candy, but did you know that the tenth month of the Gregorian calendar is also National Financial Planning Month?

If you’ve needed an excuse to take a holistic look at your personal finances, now’s your chance — with the holiday season quickly approaching, the end of 2022 is in sight and tax season is right around the corner. While it may seem like you’re prepping for the future, financial planning can start helping you out today.

What does financial planning look like?

It’s no secret that the past few years have been a bit unpredictable — to say the absolute very least. Post-pandemic, inflation blues are being felt nationwide, and many Americans are wondering what’s next. But, did you know that 37% of Americans have no financial plan whatsoever? If you’re rolling with the punches, living paycheck to paycheck, financial planning can offer you some breathing room. 

Financial planning, broadly speaking, is the process of creating a comprehensive strategy based on your income, assets, and liabilities to prepare for the future and build wealth — consider it your road map. A written financial plan is incredibly helpful in laying out your strategy.

Professional financial advisers or Certified Financial Planners (CFPs) can help you paint a picture of your financial status, but you can also start to work on a plan yourself to move toward financial freedom.

So, why should you create a financial plan?

While it may seem like putting together a conscientious, bona fide financial plan isn’t necessary if you don’t happen to have a wide range of assets and a complex stock portfolio, the truth is that everyone can benefit from financial planning. A good plan will assess your spending versus your income, give you an idea of your assets vs. debt to establish your net worth, and put you in the best possible position to maximize your wealth for the future. 

How to get your plan started

Ready to observe Financial Planning Month and start putting your best foot forward? Here are 7 tips to help you get started.

1. Get a bird’s-eye view of your financial health

If you check your bank balance or investment reports every Harvest moon, you might be surprised at what you see! The best way to stay ahead of your finances is by managing them in real time. Keeping tabs on the money you earn, the money you spend, the performance of your investments, and where you owe money is key in laying the foundation for a financial plan. 

Consider streamlining your process and opt for a subscription to Simplifi by Quicken — for less than 5 minutes a week, you can get your full financial picture. With customizable filters for bills and discretionary spending, budgeting tools, and a separate subcategory for investment monitoring, Simplifi will pinpoint exactly where you stand financially, calculate your net worth, identify your debt, and create a baseline for your plan.

Consider canceling any unused subscriptions, limiting restaurant visits or take-out, and curbing as much discretionary spending as you can if you’re in a place where saving money is a necessity. If money isn’t an issue, it still helps to monitor your account activity and spending habits to make sure everything is in order. 

2. Pay your debts as soon as you can

Carrying debt? You’re not alone. Whether you’re tethered to credit card debt, student loans, a car note, or a second mortgage, know that many other Americans are currently in a similar financial situation. To plan for your future, you’ll want to knock out as much debt as you can. 

Start by taking a look at your outstanding balances and the associated interest rates, and list them in ascending order. You can start by paying off the smallest debt first — this method is known as debt snowballing. The idea is to keep paying down the smallest amounts to get the ball rolling. 

The debt avalanche method entails making extra payments on your balance with the highest interest rate. If you have a maxed credit card with 25% APR, those interest charges could end up being close to the total of your minimum payments each year — so you’re hardly making any headway in paying the balance down! The goal is to continue to make progress on clearing the balance, so discipline is key.

The rule of thumb? Try to avoid using credit cards, but keep your accounts open and up to date — this can positively affect your credit score. Buy what you need, try to pay cash, and do your best to clear up as much of your debt as possible without spreading yourself too thin the rest of the month. And remember to stay positive — you’ve got this!

3. Create short-term and long-term goals

Goal-setting is important in nearly every facet of growth, and it’s no different when it comes to your financial future. Consider where you’re heading in life; consider what’s important to you. Are you and your partner looking to tie the knot on a beach in Thailand? Have you always dreamt of opening your own boutique? Do you want to retire by the time you’re 40? Financial planning is the key to making it happen. 

It’s best to divide your goals into short-term and long-term lists — you can even subdivide them by timeframe. If you know you’d like to get to Barcelona next spring for El Clasico at Camp Nou, you can start stashing away for that while you continue to set aside 5% of each paycheck for your home’s downpayment, so you’re ready when that special property comes along in the next year or two. 

By prioritizing your financial goals and having a time frame in mind, you can maximize your savings, stay motivated, and move closer to the finish line. 

Track your savings goals with Simplifi!

4. It’s never too early to think about retirement

If you’ve recently wrapped up your degree and have just joined the workforce, retirement is probably the last thing on your mind. Youth is meant to be enjoyed, sure, but it’s never too early to start thinking about retirement. And, truth be told, savvy saving and smart investments can result in early retirement — food for thought! 

As far as real-life practicality goes, consider investing in your corporate 401(k) if your company has one. Many businesses will match an employee’s contributions, which is an excellent way to fast-track your retirement savings. If you work in the public sector, many state and government entities offer a pension that you can contribute to for retirement. 

Remember that Social Security benefits don’t kick in until 67 or later, so if you plan on leaving the workforce prior, you need to make sure you have enough savings to last you. Even then, it’s smart to supplement any Social Security benefits with your own savings to maximize your comfortability. Retirement is a time to do whatever it is you want in life, and saving is the best way to get there.

5. Consider some low-risk investments

Investing is a great way to make money, but it’s not without risk. For any would-be Gordon Gekko out there looking to quintuple their investment on Blue Star Air, it’s a good idea to start slow and get into low-risk investments first.

While not a traditional investment, a high-yield savings account can offer a moderate return on investment with virtually no risk. Traditional banking institutions offer these types of accounts, where an above-average interest rate helps your savings accrue over time. 

Low-risk avenues for investing also include Series I Savings Bonds, which are federal savings bonds that are adjusted for inflation. They pay semiannually and can be particularly lucrative during periods of higher inflation (umm, like, right now). Since they’re federally backed, there is very minimal risk.

You can also look into cryptocurrencies, publicly traded stocks, and fixed annuities, but enter at your own risk. 

6. Build your nest egg

Saving is crucial no matter how you look at things. Buying a house, traveling the world, providing for children, purchasing a car, eventual retirement — these milestones are all facilitated by having a few pennies to rub together. As you form your financial roadmap, you’ll want to make a plan to save.

Start by stashing away for an emergency savings fund. The general idea is to save for six months of expenses, so take a look at your monthly budget and try and put together a figure. Life is unpredictable — it can be serendipitous and it can be stressful, so always have an emergency fund when it’s time for plan B. 

After you have your emergency savings resting comfortably in a savings account, go back to your short- and long-term goals list — you can start building a nest egg for any bigger purchases that might be coming up. By being strategic and frugal with your savings, you can set yourself up for success in the future while making sure your needs are met in the present. 

7. Consider working with a financial professional

It’s a common misconception that CFPs or financial advisers only work with the hyper-wealthy on financing their Rolls Royce or their fourth vacation home in Bora Bora. In reality, these professionals offer great services for anyone.  If you want to take your planning to the next level, take a look at what a CFP or financial adviser can do for you.

Here’s to a bright future

As the holiday season approaches, we can glance back at another whirlwind year — what better time than now to take a good hard look at your finances and plan for your future? While October is official Financial Planning Month, these tips can actually (spoiler alert!) be used year-round! 

By knowing where you stand financially, paying your debts, saving conscientiously, setting your goals, and staying disciplined, you can create a rock-solid financial plan to get you through the holidays, onward to tax season, and beyond! Stick with it and you’ll be well on your way to living life on your own terms.