Financial Planning Month: Stay on Budget
Discover how setting a budget helps keep spending in check and strengthens your financial future.
Managing your finances can sometimes feel overwhelming. Keeping everything in balance requires knowledge and discipline, from daily expenses to long-term investments. That’s where Financial Planning Month comes in. Every October, we are reminded of the importance of financial literacy and the necessity of maintaining a sound budget.
Promoting financial planning aims to empower people to make informed decisions, avoid debt, and build wealth over time.
Everyone needs a financial plan irrespective of income level or net worth. However, only 36 percent of Americans have a written financial plan.
“It’s always a good time to start financial planning. Whether you’ve just received your first paycheck or your hundredth, budgeting and setting financial goals is always beneficial,” advises David Neuwirth, Senior Vice President Investments at David Lerner Associates, Inc.
When is Financial Planning Month 2024?
Financial Planning Month is observed in the United States every year during October. In 2024, it will kick off on Tuesday, October 1st, and run through Thursday, October 31st. This entire month is dedicated to encouraging individuals and families to reassess their financial health, create or update their budgets, and set goals for future financial stability. It’s a perfect time to take a step back and evaluate how well your current financial plan works for you.
The concept was introduced in 2002 by the Financial Planning Association (FPA), which saw a need for a dedicated period to focus on financial literacy and the benefits of proactive financial management.
Why October? One idea is that it falls just before the holiday spending season and the end of the year, making it a perfect time to focus on budgeting, saving, and year-end planning.
Who Gets Involved in Financial Planning Month?
Financial Planning Month is a community effort involving a wide range of participants. Financial institutions, advisors, educators, and non-profit organizations all come together to offer resources and workshops. They aim to educate the public on various aspects of financial planning, from budgeting basics to complex investment strategies. Importantly, individuals and families also play a crucial role. It’s a time for everyone to take stock of their finances, understand their spending habits, and make necessary adjustments to ensure a secure financial future.
Financial Planning Month Participation Ideas
Participating in Financial Planning Month can be both educational and empowering.
Here are some ideas to make the most out of this important month:
- Review Your Budget: Take a close look at your current budget. Are you spending more than you should? Are there areas where you can cut back? Adjust as needed to ensure your spending aligns with your financial goals.
- Set Financial Goals: Identify your short-term and long-term financial goals. Whether saving for a vacation, paying off debt, or building an emergency fund, having clear goals can keep you motivated and focused.
- Build an Emergency Fund: If you don’t already have one, start building one. Aim for three to six months’ living expenses to cover unexpected costs.
- Debt Management: Plan to pay off any outstanding debt. Prioritize high-interest debts and consider consolidating or refinancing if it makes sense for your situation.
- Review Your Investments: If you have investments, review their performance and ensure they align with your risk tolerance and financial goals. Consider consulting an investment counselor to maximize your savings and investment strategy.
- Check Your Credit Report: Obtain a free copy of your credit report and review it for accuracy. This is an excellent way to catch early errors or signs of identity theft.
- Plan for Retirement: Review your retirement savings plan. Are you contributing enough? Do you have a strategy in place? If possible, consider increasing your contributions.
- Educate Yourself: Take advantage of free resources offered by financial institutions and advisors. Attend workshops and webinars, or read articles on financial planning. Knowledge is power when it comes to managing your finances.
- Family Discussions: Have open discussions with your family about finances. It is important for them to be on the same page regarding financial goals and spending habits.
Financial Planning Month is more than a reminder to review your finances; it’s an opportunity to take control of your financial future. By making small, consistent changes, you can achieve greater financial security and peace of mind. Whether you’re just starting or looking to refine your plan, this month offers the perfect chance to make meaningful progress.
At David Lerner Associates, we are here to help you navigate the complexities of financial planning. Our experienced investment counselors are committed to providing the guidance and support you need to achieve your financial goals. Let’s work together to make this Financial Planning Month your most productive.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.