4 Steps for a Fall Finance Audit, According to ‘Five-Year Millionaire’ Jason Brown
Written by
Stephanie Mickelson
Edited by
Rebekah Evans
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Before the holidays really get rolling, it can be helpful to take a pause to do a “money reset.” October and early November are great times to do this because you can go into quarter four feeling confident about where you are financially and plan for where you’re going.
GOBankingRates talked with stock market expert at TheBrownReport.com and author of “Five-Year Millionaire” Jason Brown to get his take on why you should do a fall financial audit to prepare for the holiday season.
What Is a Money Reset?
“[A money reset] is about pressing pause, taking inventory and realigning your financial habits with your bigger goals,” Brown said. This means checking in with your saving and spending habits to make sure the decisions you’re making are helping you maximize your personal finances.
“When you reset your finances before the holidays,” Brown said, “you avoid the ‘January regret’ moment when you realize you overspent or went into debt and now have to play catch-up.”
A money reset lets you go into the season feeling confident and in control of your money.
Fall Is a Great Time To Reset
Fall represents a transition. The season is changing, and we’re moving from the fast pace of summer into the slower winter season. This makes it the perfect time to slow down to take a look at where you’ve been and where you’re going.
“Think about it by October, you’ve got three quarters of the year behind you and enough data to see your progress,” Brown said. “There’s still time to make adjustments before the year ends if you’re off track or have started to steer away from your original financial intentions you set at the beginning of the year.”
How To Do a Fall Finance Audit in 4 Steps
A fall finance audit lets you plan for holiday spending and do any course corrections necessary to end the year on a good financial note. Here are four steps that Brown recommends to get started.
- Review your last 90 days of spending and build your budget. Brown said to pull up your bank and credit card statements and then highlight anything that wasn’t essential or no longer aligns with your goals. Then build your budget around your income and current prices. This budget will carry you through the end of the year and should include everyday expenses, holiday spending, savings and investing.
- Check your emergency fund and debt levels. Make sure you still have three to six months of emergency reserves. If your emergency fund is low, make a plan to get it back to where it needs to be. On the flip side, if your debt has increased, “make a plan to pay it down aggressively before the new year,” Brown said.
- Reassess investments and retirement contributions. Check your accounts to see if you’re still on track with your wealth-building goals. Look ahead to tax time to see if there are accounts that you can bump up contributions for before the year ends. “[This] is the time to make those final pushes that compound over time, all while allowing you to take advantage of some tax benefits,” Brown explained.
- Set a family financial meeting. When everyone in the family is on board with financial goals, it’s easier to meet them. Sit down with the whole family and talk about financial goals and how family members can contribute. This way, everyone will be prepared for any spending adjustments from now until the end of the year.
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