With summer spending behind you and holiday costs still to come, fall is an ideal time for Canadians to review their finances. Not only can you evaluate your budget, pay down debt, and monitor your goals, but you can also align your savings with future plans. Here are the things to consider during your fall financial checkup.

Check your summer spending

If you haven’t already, it’s time to add up your summer expenses to see where all your money went. Begin by checking your bank statements and credit card bills from June to August. What you’re looking for are patterns in your spending habits during this period; for example, increased eating out, unplanned day travel and shopping.

Compare these costs to your usual spending and monthly budget. If you’ve stayed on track, there’s no need to worry. However, if you’ve exceeded your typical budget, you should adjust your approach for next summer or even the holidays, where you might be tempted to relapse.

Update your budget

Since you’ve already examined your recent spending, it’s now time to review and adjust your budget before the end of the year. Start by looking at your income and expenses from the past few months. If anything has increased or decreased, then you need to make immediate updates.

Paying attention to specific categories, such as groceries, utilities, and transportation, is especially important, as prices may have increased. If you haven’t already included a line for presents, now might be the time to do so, especially since the holidays will be coming up soon.

When creating a budget, set realistic limits for each category based on your spending habits and financial goals. Remember, every dollar you cut from one category can be redirected to another. Additionally, if you’ve received a salary increase or started a side hustle, consider putting that extra cash directly into savings or debt repayment to boost your net worth.

Prioritize paying down high-interest debt

Regardless of the time of year, paying down high-interest debt such as credit card debt should be a priority. Simply put, it’ll be nearly impossible for you to get ahead with your finances if you’re paying 20% interest charges every month.

Focus on paying off your highest-interest debt first to boost your savings. Usually, this will be credit card debt, but if you have payday loans, their interest charges might be even higher. Once you clear that debt, apply any extra funds to the next highest-rate debt. This approach helps you pay less interest over time. 

Set up or adjust automatic contributions to your RRSP

As you start to approach the end of the year, it’s the perfect time to establish automatic Registered Retirement Savings Plan (RRSP) contributions. By doing this, you’ll be contributing to your future self and giving yourself a tax break at the same time. Plus, you won’t need to scramble to find the funds in the New Year when the traditional RRSP deadline approaches.

To set up automatic transfers, contact your financial institution or investment brokerage to arrange regular transfers from your chequing or savings accounts to your RRSP. You can select weekly, bi-weekly, or monthly contributions based on your pay schedule.

If you’re already on an automatic plan, consider boosting your contributions to grow your savings. Consistency helps develop a disciplined savings habit. 

Assess your emergency fund

Your emergency fund serves as a financial safety net for unexpected expenses, such as a job loss, auto repairs or medical bills. Fall is the perfect time to review whether your current fund meets your needs.

Review your monthly expenses to see if your emergency fund can cover essentials for three to six months. Key categories to consider include rent or mortgage, groceries and utilities. If your fund is short, gradually increase it until you feel comfortable with the amount.

Review insurance policies

Your financial circumstances change throughout the year, and your policies should reflect these shifts. For example, if you have recently gotten married or have quit your job to become self-employed, you may have different insurance needs now. 

Start by reviewing all your insurance policies, such as life, home, auto, and health, to ensure the coverage amounts are still adequate. If not, contact your insurance provider or broker to find a plan better suited to your current situation.

When updating your policies, ensure that you also have the correct beneficiaries listed.

Verify your TFSA contribution room

Knowing your remaining room in your Tax-Free Savings Account (TFSA) can be helpful since it’s a registered account that allows you to invest money tax-free. Once you know your limit, you can top it up to maximize your time in the market.

The simplest way to find out your current contribution space is to check your account on the CRA website. While financial institutions report contributions throughout the year, it’s not updated instantly. In other words, you should verify how much room you have left before making any contributions.

Final thoughts

Fall provides a new opportunity to review your finances before holiday expenses begin. By paying off debt, tightening your budget, and boosting your savings, you can prepare for a more secure financial future.

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. As a completely self-taught, do-it-yourself investor with no formal training, he makes money easy to understand for all Canadians. His specialties include personal finance, budget travel, millennial money, credit cards, and trending destinations.

Barry Choi is a paid spokesperson of Sonnet Insurance.