Every autumn we’re urged to change the batteries in our smoke detectors when we change our clocks back to Standard Time. Those batteries might be just fine, but why take a chance?
I propose another ritual, one that should be observed at both the spring-forward and fall-back time changes: Checking in with your personal financial goals.
Some people are organized enough to revisit their PF wish lists regularly. Some aren’t. If you’re in the latter group, the twice-annual clock change could be a good time to open the ledger.
You’d be looking at some or all of the following topics:
Your overall budget. Are you going way over in some categories? If so, start looking for the leaks so you can brainstorm ways to plug them up.
Changes in the past six months. Maybe you got a raise or paid off a vehicle. What are you going to do with the extra money? Don’t let it just be absorbed into your budget.
Impending changes. You just found out you’re pregnant. A job opportunity means you’ll be moving in three months. Your oldest child will graduate from high school in June. Change is good, but change can knock your budget silly. What are some ways to keep that from happening?
Your retirement fund. Is it growing or losing ground? If you’re not happy with it, maybe it’s time to talk with someone. (Don’t have a retirement fund? Start one. Now. Please.)
Your emergency fund. Again: If you don’t have one, automate just a few dollars a week to start.
Your credit report. Each year you’re entitled to one free copy from each of the three nationwide reporting companies. If you haven’t done this lately, take advantage.
Progress on previous resolutions. Not just the kind you make on Dec. 31, but also general goals such as paying down consumer debt, looking into a mortgage refi or searching for better deals on insurance. What kind of action have you been able to take? If the answer is “none,” what could help you get started?
This doesn’t have to be done all at once. But use the time-change ritual to spur you into taking action, even if only in a couple of categories. Your budget may be just fine, but why take a chance?
Related reading:
- You know what’s hot? A money date
- Toward a care-free retirement
- Between the (budget) sheets
- Is it ever too late to start saving?
Great reminder, Donna! Thank you!!
Sounds like a good plan!
I love this!
I followed your suggestion and scoured our budget to eliminate a couple of unnecessary monthly fees. Husband’s 1991 CR-X has officially begun to cost more in annual repairs than the car is worth, so we’re vehicle shopping, and need to save all we can. His employer is also going through a merge early next year, and they’ve made it clear that there will be redundancies, so we’re battening down the hatches…
“Redundancies” — eek! Good luck.
Thank you! We’re choosing to view this as an exciting time of opportunity, whatever happens. It’s just keeping us on our toes.
Love your attitude Elizabeth!
Excellent suggestions Donna! I am about to start on your suggestions re my budget.
I thought of you today as I was soaking some butter beans for my dinner tomorrow. Until I read your blog I had never eaten, let alone soaked beans, always opting for more expensive meat instead. I am going to cook them in some ham stock, also a suggestion of yours. Thanks again for all of the helpful suggestions. My budget is the healthier because of you.
Thanks for your kind words. Look online for bean recipes — tons of them out there.
Even as I write this I have another “boiling bag” dumped into the crockpot, along with some vegetable cooking water I’d been amassing in the freezer. I think we’ll do another of those sausage/potato/kale soups. The smell of the stock slowly cooking makes the house feel warmer.
Thanks for being such a consistent reader and commenter.
Good idea!
Luckily for me, my method of budgeting requires regular review. What I’ve found works for me (but wouldn’t likely for many others) is I created a custom Excel spreadsheet with a monthly budget (also includes my snowball calculations and health expenses). I then copy that monthly budget tab & create (2) additional budgets per month based on payday, i.e. 11/15 & 11/30. The reason I do this is not every bill is the same amount due each month & some months brings different expenses. I update the payday budget every few days to make sure I’m not overspending, i.e. I have $65 left for gas. It really only takes a few minutes. And when reviewing my payday budget I also update my debt/saving/retirement fund balances & snowball budget. I do this because my budget is so tight I need to see where every dollar is going. I have it calendar’d in Google to order 1 of my 3 free credit reports every 4 months.
Now that’s organized. Wow.
I love reminders like this!Running a self-diagnostic is the way to get ahead.