Families are getting in their last beach trip. School is starting back. Football will soon be on the television (Let’s go, Kentucky Wildcats!).
Summer is coming to an end.
As you wrap up the warmer months and look toward fall, there are some important financial moves you should make. None of these moves should take a significant amount of time, but they can be highly impactful as for the upcoming months.
Here are four money moves to make before summer ends:
1. Plan for your children’s extracurricular activities.
Parents with school-aged children are aware of the costs associated with extracurricular activities. In our family, we know how expensive athletics and music lessons can get. If you have a school-aged child, now is the time to plan for your children’s extracurricular expenses. Don’t get caught off guard when your child needs new cleats or a new instrument. Don’t get caught off guard when the athletic league or school sends you a bill. Plan for your children’s extracurricular activities.
2. Establish your holiday budget.
Thanksgiving, Christmas, and New Year’s Day arrives in just a few months. The costs from these holidays are often placed on a credit card due to a lack of budgeting. For some, this debt will carry over into the next year. As the summer months end, establish you holiday budget. Consider food, travel, and gift expenses. Enjoy your holidays without debt. Establish your holiday budget.
3. Make sure you have your emergency fund in place.
None of us know what will happen this fall. If 2020 taught us anything financially, it was to have an emergency fund in place. A healthy emergency fund covers three to six months of living expenses. If you are single, you can lean toward the three months of living expenses. If you are financially responsible for several people, you should lean toward six months of living expenses. If you find that you do not have enough in your emergency fund, create a plan to increase the amount. Make sure you have your emergency fund in place.
4. Review your net worth.
Net worth is one the best ways to gauge your overall financial health. Your net worth equals your total assets (what you own) minus your total liabilities (what you owe). The value of your home, cars, cash, and investments are assets. Loans (including mortgages) and credit card are liabilities. Take a few minutes and calculate your net worth. Consider what can be done to increase your net worth this fall. Review your net worth.