As the holiday season approaches, many individuals are reflecting on their finances and planning their budgets for celebrating this joyful time of year. This coincides perfectly with October being National Financial Planning Month! Let’s take this opportunity to highlight the significance of effective financial planning and share some useful tips to help you get your finances in order.

Create a Budget
The first step to control over your finances is to create and adhere to a budget. While everyone's budget will differ, the 50/30/20 rule is a great starting point. This rule suggests allocating 50% of your budget to essentials like rent and groceries, 30% to wants such as entertainment, and 20% to savings and debt repayment. There are also many helpful apps available, like Mint, You Need a Budget (YNAB), and Honeydue, which can assist you in maintaining your budget, especially when budgeting with a partner.

Be Smart With Your Debt
Not all debt is inherently negative; it can be beneficial if managed wisely. For instance, taking out a car loan and making timely payments can help you acquire a vehicle without paying in full upfront and can also improve your credit score. However, be cautious of high-interest debt, as it can lead to financial difficulties.

Understand Interest Rates
Understanding interest rates is crucial as they significantly affect your finances and debt. Mortgage rates typically range from 3% to 6%, depending on the market and your credit score, while the average credit card interest rate was nearly 20% as of March 2022. This stark difference illustrates how quickly credit card debt can accumulate, making it challenging to manage your finances.Additionally, being aware of interest rates can guide your financial decisions. Instead of paying cash for an asset like a car or house, consider a low-interest loan and invest the cash in a vehicle that could yield a higher return than the interest you’re paying.

Get Covered by Insurance
Finally, to honor Financial Planning Month, ensure you have the right insurance coverage. If you have dependents, life insurance is essential to protect your loved ones. Additionally, consider renters or homeowners insurance, car insurance, disability insurance, and health insurance.These are just a few steps you can take to enhance your financial health this National Financial Planning Month. Start the holiday season by improving your financial fitness!