It’s worth checking all these off the list.
- We have certain financial tasks to tackle towards the end of the year.
- These moves will give you financial benefits and bring you peace of mind.
- Organize your financial assets and make sure you spend the money in the FSA.
Oh October. For many of us, nothing beats cool air, sweater-like weather, and changing leaf colors. It’s not just the timing. It’s also a great time to take control of your personal finances. Here are some key moves to make this month.
1. Increase emergency savings
Experts have warned for months that the economy could slip into recession in the short term. As such, October is a great time to work on increasing your emergency fund. Aim to have at least enough money in your savings account to cover your necessities for three months. Set your goals higher to get more protection. Some experts even say his eight to 12 months worth of savings aren’t unreasonable.
2. Pay off credit card debt
If your goal is to start the new year on a clean slate, now is the time to tackle your credit card bills. Look at your balances and try to knock out the ones with the highest interest rates first. You can also try balance transfer, which moves various balances to his one card. Ideally, a card with a low interest rate or 0% adoption.
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3. Increase your 401(k) contribution
You have until December 31 to fund your 401(k) plan for the 2022 tax year. So if you want to get closer to the annual cap ($20,500 for him under 50 and $27,000 for over 50), now is the time to tell your payroll department to deduct more from your salary. It’s time. salary. If you have a traditional 401(k), the more you donate (up to your annual limit), the more taxes you save. Plus, the more you deposit into your account, the bigger the nest egg you retire.
4. Plan how to spend remaining FSA funds
If you have money left in your FSA (Flexible Spending Account), you don’t want to wait too long to use it up. Many plans require the balance to be exhausted or the funds to be forfeited by the end of the calendar year. Think about the medical visits you’ve postponed and schedule those appointments. You can also stock up on covered over-the-counter expenses covered by the FSA, such as ointments and wound care products.
5. Review benefits options during open enrollment at work
October is the time when many companies present their employees with benefits options for the coming year. Take some time to consider what health insurance you’ll get, whether you’ll contribute to his FSA next year, pet insurance if your company offers it, and other perks you want to choose.
October is a great transition month. It’s not summer, but it’s not too cold. But while you’re enjoying the wonderful weather and changing seasons, take the time to assess your finances and make these important moves.
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