I am sure you are familiar with this phase “fall backward spring forward.” When you hear it, you immediately think of resetting your watch or clock in preparation for the spring or fall season. Well, with one week to go before Labor Day which signals the end of summer, it’s time to reset your financial clock. Summer is usually a season when we spend in excess of our budgeted amounts and therefore some fiscal responsibility is necessary in the fall. Here are some fall financial areas to consider.
Health Care Enrollment
Health care open enrollment begins in the fall each year. This enrollment opportunity covers self employed health insurance, employer sponsored plans and Medicare. Now is the time to reset your financial clock by reviewing your plan and exploring all the options available.
You want to choose an option that meets both your health and financial needs. If there were any significant changes in your life since the last enrollment period such as marriage or additions to your family being unprepared for open enrollment could cost you.
Also, look at making any spending adjustments needed to your flexible spending account balances.
Prepare a Holiday Budget
Even with Covid-19 and a high unemployment rate, my unofficial survey revealed many still plan to exchange gifts and shop for the holidays. What?! I’ll reserve comment on that thought since some of you may think of me as “The Grinch who stole Christmas.” But, since some of you are going to do it anyway the best thing to do is prepare a holiday budget. Make a list, set a budgeted amount you plan to spend, figure out how much you plan to save each pay period or weekly and set a limit on how much you will spend on each gift.
Personal or Business Tax Forecast
If you have an official business or just a side hustle, the fall might be the time to assess your income, salary and expenses to begin making any necessary adjustments so that you don’t end up owing Uncle Sam. Well, he’s not really your uncle, but the guy who shows up every April 15. Get in touch with your tax professional for a free consultation or assessment of your current circumstances to avoid the April 15, 2021 blues.