Give Your Household Budget an October Checkup

As the leaves begin to change and the weather gets cooler, many of us start thinking about Halloween, Thanksgiving and the holiday season ahead. October is also a good time to take a close look at your household budget.

The last few months of the year can be expensive. Between holiday shopping, entertaining, travel and higher grocery bills, it is easy to spend more than expected. Taking some time in October to see where you stand financially can make the rest of the year easier to manage.

Get Ahead of Holiday Spending

The holidays have a way of arriving sooner than we expect. Before the shopping begins, look at what you can realistically afford to spend.

Think about gifts, groceries, decorations, travel and any holiday events you normally attend. Making a list of expected expenses now gives you time to put money aside rather than relying on credit cards when December arrives.

You may also want to decide which expenses are most important to you. Not every holiday tradition has to stay exactly the same from year to year.

Take a Look at Your Spending

October is a good month to look back at your spending over the summer. Check your bank and credit card statements and see where your money has been going.

You may find subscriptions you no longer use, memberships you forgot about or areas where you are spending more than you realized.

Look at things such as takeout meals, entertainment, online shopping and other extras. You do not have to cut everything out. Making a few small changes could give you some extra room in your budget for the holidays or your savings account.

Review Your Monthly Bills

Take a look at your regular household bills too. This includes your internet, cellphone, insurance, streaming services and other monthly expenses.

Have any of your bills increased during the year? Are you still using everything you pay for?

It may be worth contacting a service provider to ask about current plans, discounts or less expensive options. You may also discover that you are paying for a service you no longer need.

Check Your Savings

If you have been putting money into an emergency fund or another savings account, see how you are doing.

Perhaps you had an unexpected expense during the year and had to use some of your savings. Maybe your income has changed or some of your regular expenses have gone up.

October gives you time to make adjustments before the new year. Even putting a small amount aside from each pay-cheque can help build your savings over time.

Plan for November and December

You do not need a complicated spreadsheet to review your budget. A notebook, calculator or budgeting app can be enough.

Start by looking at your expected income and regular expenses for November and December. Then add the extra costs that usually come with the holidays.

Once you know what you have available, you can decide where you can spend and where you may need to cut back. This can also help you avoid the temptation to make purchases simply because something is on sale.

Leave Some Room for the Unexpected

Even the best budget cannot predict everything. A car repair, unexpected bill or last minute holiday expense can quickly throw things off.

If possible, leave a little room in your budget for unexpected costs. Having some flexibility can make it easier to handle a surprise expense without reaching for your credit card.

A Little Planning Can Help

Reviewing your household budget in October does not mean you have to stop enjoying the holiday season. It simply gives you a better idea of what you can comfortably afford.

Taking some time to look over your finances now could help you avoid some of the financial stress that often arrives in January. A little planning today can make it easier to enjoy the holidays without worrying about how you are going to pay for everything later.

October is a good time to check your budget, make a few adjustments and head into the final months of the year knowing where your money is going.

If you want more practical ways to manage your money, read 5 Essential Rules for Smart Budgeting and Financial Freedom for additional budgeting tips.