End of Year Financial Planning For Fall

The Importance of a Year-End Financial Check-Up

If you tend to repeat the same habits year after year, you’ve probably found that your financial situation isn’t changing for the better. Maybe you always run up your credit cards at Christmas, scramble to pay the bills at the end of the month or need your annual tax refund to pay for summer expenses. A year-end financial check-up can help change that.

Look objectively at this last year. Where did things go right financially and where did you fail to hit your goals? An end of year checkup helps you identify areas for improvement so you can work on the trouble spots next year. Having a plan to improve your finances gives you a fresh start in the new year and helps you avoid money-related stress.

Anticipate Holiday Spending

Holiday spending can easily get out of hand. The best way to avoid overspending this holiday season is by creating a budget and sticking to it. Start by determining how much money you can spend on winter holidays in November and December. This extra money may come from a savings account, or you may have to cut back on other monthly spending to find extra cash.

Budgeting for the holidays includes planning for more than just gift giving. Once you have a spending limit, divide that total into smaller categories of holiday-related expenses. A few categories to get you started include:

Gift Giving
Home Decorations
Holiday Meals
Holiday Cards and Wrapping Paper
Party Hosting Expenses
Holiday Travel

Save money this holiday season by planning ahead, shopping early sales, and avoiding unnecessary and impulse purchases. If you have credit card debt from previous holidays, take a look at the CSB Guide to Recovering from Christmas Spending.

Build Your Savings

Fall is the perfect time to review your savings goals. Were you consistently saving money this year, and could you increase your contributions to savings next year? The best way to save is by automating transfers from your checking account to your savings accounts. You can set this up through direct deposit or with the CSB mobile banking app. Whether you are still building an emergency fund or need to start saving for a large purchase or vacation, create a plan this fall.

If contributing to savings is not part of your current monthly budget, consider adding that budget category next year. Many experts recommend a 50-30-20 budgeting method in which you allocate 50 percent of your income to needs, 30 percent to wants, and the remaining 20 percent to financial goals like savings and debt repayment. To avoid financial hardship in the face of a medical emergency or sudden job loss, be sure to have an emergency savings fund that can cover 3-6 months of expenses.

Want to save more money next year? Try implementing these tips to increase your savings:

Avoid impulse spending – wait at least 24 hours before making a purchase
Pay with cash – choosing cash over credit typically helps you spend less
Decrease your restaurant budget – prioritize eating at home over restaurants and take-out
Get a side gig – find an alternative source of income to help grow your savings
Downsize your subscriptions – cancel apps and streaming services that you rarely use

Save for Upcoming Heating Costs

Holiday spending isn’t the only winter expense that can cause financial distress. It’s hard to predict how much it will cost to heat your home during a Southwestern Colorado winter. If you don’t have records of how much your heating bills have been over the last few years, you can estimate your projected energy usage with a BTU calculator.

Start saving now for your winter heating costs by opening a dedicated savings account and begin putting aside extra funds in the fall months. If needed, readjust your monthly budget and pull money from your restaurant or entertainment categories to build your winter savings.

Save money on heating costs this winter by planning ahead:

Install programmable thermostats to reduce heating costs when you are away for the day and at night.
Seal drafts under doors and around windows to prevent heat from escaping.
Have your heating system inspected and any maintenance completed before the busy season.
Add additional insulation to attics, basements, crawlspaces, windows, water heaters, and hot water pipes.
Switch your ceiling fans to a clockwise spin to keep heated air down where you sit and sleep.
Utilize a home equity loan to upgrade your heating system to an energy-efficient product that can save you money.
See if you qualify for Colorado’s Affordable Residential Energy (CARE) Program to get free energy efficiency upgrades in your home.

Home Winterization Projects

It might seem odd to talk about winterizing your home as part of your fall financial planning, but preparing your home for winter can protect your wallet in more ways than one. Home winterization projects help lower your heating costs while preventing damage to your home and costly repairs.

Consider adding these tasks to your fall checklist:

Inspect your roof and gutters

Grab a ladder and take a look at the state of your roof and gutter system before winter weather hits. Check for damaged and missing shingles and repair any spots you find. Clean out your gutters and downspouts once the last leaves have fallen as full gutters can create ice dams that lead to water damage in your home and attic.

Wrap pipes both indoors and out

Start with outdoor water pipes and pipes in unheated areas of your home such as basements, garages, and attics. Wrap them in foam or fiberglass pipe insulation found at your local hardware store. For indoor pipes, be prepared to wrap exposed water pipes in foam or towels during the coldest months. Pipes that freeze and burst can cause thousands of dollars in damage.

Hire a chimney sweep

Hiring a professional to inspect your chimneys and fireplaces helps to ensure that they are safe and functional as winter approaches. Cracks in your chimney or damage to your flue can let cold air inside all winter, increasing your energy bills.

Get Ready for the New Year

As you look back on last year’s financial wins and losses, it’s a good time to set new financial goals for the upcoming year. Review your financial knowledge and be inspired to achieve financial wellness with our financial literacy quiz.

By watching your holiday spending, evaluating your savings goals, and preparing for winter home maintenance, you’re setting yourself up for a great new year. Contact our friendly associates to see if a new savings account or HELOC can help improve your financial health. CSB is here to help with your financial planning this fall. Stop by one of our convenient locations in Naturita, Ouray, Ridgway, Silverton, and Telluride.

Financial Planning for Fall: Getting Ready for the End of the Year

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