November is a great time to assess your budget and start making financial plans for the upcoming months. With family gatherings, parties, and holidays on the horizon, it’s going to be a busy time, and unexpected expenses can easily add up.
The best way to manage the chaos of the season is through planning. Planning helps keep your finances on track and reduces stress.
Start with a Budgeting Tool or App
To begin, use a budgeting tool or app like EveryDollar to get a clear picture of your finances. There are countless options available, but don’t get overwhelmed by the choices. Pick one that suits you, and remember, you can always switch later. Right now, the goal is to understand your income, track your expenses, and anticipate what the next two months will look like financially. Christmas is always on the horizon, so it’s best to plan ahead. This gives you time to adjust if you anticipate tight finances, so January doesn’t come as a surprise.
Estimate Your Income
Do you know how much you expect to make in the next two months? If you have consistent income, this is easy to figure out. If not, try to estimate based on your previous months. It’s better to underestimate and cover all expenses than to overestimate and risk falling short.
Track Your Regular Expenses
Make a list of your regular expenses, such as housing, utilities, food, car payments, credit cards, and loans. This will give you a clear idea of your monthly obligations.
Review Your Subscriptions
November is also a great time to review any subscriptions. Are you actually using all of them? Consider cutting back on services you don’t need right now. You can always resubscribe later if you miss something. This can free up extra cash for other priorities during the busy holiday season.
Analyze Your Spending Habits
Look back at your transaction history to see where your money is actually going. Categorize your expenses to identify spending patterns. This will help you be more purposeful with your finances over the next couple of months. For example, is ordering lunch at work worth the cost, or would you rather save that money for a dinner with friends? Can you brew coffee at home to avoid extra expenses while shopping with friends?
Your spending choices come down to what you personally value. For me, I’d rather pack my lunch and save money for quality time with friends or family. I’m also willing to make small sacrifices to achieve my long-term goals. Staying focused on what’s important to you helps create a balance between short-term enjoyment and long-term financial security.
Finding Financial Comfort
One of the most rewarding feelings is achieving financial comfort. While I still carefully manage my money, the stress has been significantly reduced. By keeping my expenses under control, I’ve created more breathing room in my budget. This freedom allows me to enjoy life without constantly worrying about finances.
Keep a Balanced Focus During the Holidays
With the holidays approaching, the key is not to worsen your financial situation. The season is naturally a time of increased spending, so focus on maintaining your current position. There are times for growth, but this might be a season for holding steady.
Don’t let life push you backward financially. Make a plan to ensure you’re at least in the same financial position come January 1st. Achieving this goal alone is an accomplishment worth celebrating.