Turn Over a New Financial Leaf

October is Financial Planning Month, making it an ideal time to evaluate your finances and build a strong plan for the future. Whether you want to reduce debt, grow your savings, or prepare for long-term goals, now is the time to set yourself up for lasting financial success.

Here are practical tips to help you take charge of your financial well-being this month:

Follow the 50/20/30 Rule:

A simple budgeting method like the 50/20/30 rule can help you manage your money more effectively. Allocate:

• 50% of your post-tax income to essential needs such as housing, groceries, and utilities
• 20% to savings and debt repayment
• 30% to personal spending and non-essentials

This rule creates a healthy balance between your obligations, future goals, and lifestyle choices.

Use Separate Bank Accounts for Different Goals:

Creating multiple bank accounts for specific purposes makes it easier to organize your finances. For example, set up one account for bills, another for savings, and a third for discretionary spending. This helps prevent accidental overspending and keeps you focused on your priorities.

Get a Complete View of Your Finances:

Start by gathering financial documents such as bank statements, credit card balances, loan information, and pay stubs. Review your income, debts, and expenses over the past few months to identify trends. Understanding your current financial position is the first step toward making informed decisions.

Balance Short-Term and Long-Term Goals:

Set SMART goals that are Specific, Measurable, Achievable, Relevant, and Time-bound. Examples of short-term goals include building an emergency fund or paying off a credit card. Long-term goals may include buying a home, saving for retirement, or funding a child’s education. Clear goals help you stay focused and motivated.

Protect What You Have:

Insurance is an important part of any financial plan. Review your coverage for health, life, home, auto, and other types of insurance. Make sure your policies provide the protection you need so that unexpected events do not derail your financial progress.

Diversify Your Investments:

Spreading your investments across different asset types can reduce risk and improve long-term returns. A diversified portfolio helps your money grow while protecting you from market ups and downs. Consider speaking with a financial advisor to create an investment strategy that fits your risk tolerance and goals.

Plan for Retirement Early:

The earlier you begin saving for retirement, the more time your money has to grow. Contribute regularly to retirement accounts such as a 401(k) or IRA. Even small contributions can make a big difference over time thanks to compound interest.

Work with a Financial Professional:

A trusted financial professional can help you build a plan that fits your specific needs and goals. They can offer advice on investments, taxes, insurance, and more. Partnering with an Oppenheimer Financial Professional can give you confidence and clarity as you move forward. Find one in your area today.

Use October as a reminder to check in with your finances and take steps toward a more secure future. Start with a clear plan, build healthy habits, and stay informed. With the right approach, you can turn your goals into reality and create financial stability that lasts.