How the October Theory Can Help You Reset Your Financial Goals
The idea of the ” October Theory ” is gaining traction on TikTok, and the gist of it is simple: fall symbolizes change and new starts, and it’s the perfect time to re-evaluate your goals and values. With less than three months left until 2024, this is the perfect opportunity to review our progress and, in particular, adjust our financial goals.
As with “ loud budgeting,” “ frugalism ,” or the “ underconsumption framework ,” the financial revolution of the October theory is another buzzword for something that has always been there: being mindful of your money. As the seasons change, people are especially prone to introspection, making October an ideal time to reflect on the past year and change financial habits.
How to reset your financial goals
Financial adjustments in October allow people to gain momentum, set realistic goals, and start the new year with a sense of progress and achievement already made. Instead of starting new habits in January, “starting in October gives you a head start and can make financial changes more sustainable in the long run,” says Julie Guntrip, head of financial wellness at Jenius Bank .
For those who have strayed from the ambitious goals you set 10 months ago, Guntrip offers some practical tips to help get your financial goals back on track before the end of the year.
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Reviewing your budget may be a good idea to ensure that your spending, saving and debt repayment plans still fit within your current financial circumstances. Regularly tracking your expenses can allow you to identify new spending patterns and notice changes before they potentially become problematic. Getting back on track can help you achieve your goals by the end of the year and potentially boost your confidence in setting your 2025 goals.
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Creating a targeted holiday spending plan can also be a good idea. No one wants to see their financial goals for 2024 and possibly 2025 derailed by out-of-control spending in November and December. Setting end-of-year spending boundaries can help you emerge stronger and prepare for a strong start to the new year.
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Paying off small debt can help create a sense of accomplishment as you move toward larger debt payoff goals. The debt avalanche method —paying off high-interest debt first—is usually the recommended approach. However, the debt snowball method, which looks at the smallest debt balance to pay off first, may provide a quick win in October. This can help develop good financial habits in November and December and provide optimism for the new year.
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Reviewing your retirement contributions can be a smart financial move to ensure you’re on track toward your long-term goals, especially if you’re trying to reach a certain dollar amount by the end of the year.
How to end this year strong
If you’re setting goals in the fall to achieve by December 31st, do yourself a favor and make them realistic—that is, ones you can actually achieve in less than three months.
Guntrip advises starting by defining your monetary value: assessing how money affects different areas of your life and articulating what is most important to you. Second, set clear priority financial goals that resonate with your values, such as paying off debt or saving for emergencies, and rank them by importance. You can even set a values-based budget . And third, put plans in motion to achieve your goals using tactics such as budgets , high-yield savings accounts , automatic savings contributions , etc.
If you’re not entirely sure what your specific goals are, you can still “approach November and December with an intentional spending mindset,” Guntrip says. For example, plan your holiday spending ahead of time so that year-end purchases don’t leave you with additional credit card debt or depleted savings. This is a potential way to avoid coming out of vacation feeling behind or unmotivated to achieve larger goals.
TikTok trends are far from perfect, but the basic idea is worth it: Making changes in October can help you end the year strong, making it easier to enter 2025 with your finances in better shape.