Years ago, I heard a master gardener say “fall is the best time to garden.” Those words are as true for those who are cultivating soil as they are for those cultivating their financial future. Fall is the best time for financial planning, because November-December coincides with the annual open enrollment period for employer benefits. If you want to build a life you can be proud of, a small amount of planning in the fall, paired with taking advantage of employer benefits, can yield incredible results.
Unfortunately, most of us fail to make the most of the benefits available to us by not taking a good look at our priorities for the next year. Many employers have options to help you meet your priorities next year, but you must make those decisions now, not January 1st. Enrollment will be closed by that point. For many of us, our priorities are obvious: pay down debt, put money away for retirement, save for a home purchase. For others, priorities might be just as important, but more overlooked, such as setting aside money to pay for counseling or taking time away from work to tackle a major project like helping a parent declutter and downsize.
Something to think about
- What are areas of life that, if I invest time, money, and energy in them next year, will make a long-term impact (5+ years)?
- What are the top three priorities for next year I want to focus on?
- How can money help me get there?
Something to do
- Save money by paying less in taxes in a Health Savings Account (HSA) or Flexible Spending Account (FSA) (both plans use pre-tax money deducted from your paycheck for health and/or childcare related costs).
- Ask for a portion of your paycheck to be directed to a separate savings account (helps to save for large purchases, or build an emergency fund).
- Ask your employer to provide routine training to bolster your marketable skills and financial wellness programs to support your money management (increases your earning potential and better use of your money at no cost to you).
Photo by Nong