The concept of the “October theory” is gaining immense popularity on platforms like TikTok. At its core, it emphasizes that autumn represents transformation and new beginnings. As we approach the final quarter of 2024, now is an excellent time to evaluate our achievements and recalibrate our financial objectives.

In a manner similar to terms like “loud budgeting“, “spaving“, or “underconsumption core“, the financial dimension of the October theory serves as a contemporary label for a timeless principle: being conscientious with our finances. The changing seasons prompt self-reflection, making October an ideal moment to look back on the past year and revise financial behaviors.

Reassessing Financial Objectives

Adjusting financial strategies in October empowers individuals to build momentum, set achievable targets, and embark on the new year bolstered by a sense of progress and achievement. As Julie Guntrip, Head of Financial Wellness at Jenius Bank, observes, “Beginning changes in October offers a jump-start and can contribute to more lasting financial habits.”

If you find that you’ve deviated from the ambitious goals set ten months ago, Guntrip suggests practical steps to get back on track before the year wraps up.

• Reviewing your budget could be a beneficial exercise to ensure that your spending, savings, and debt repayment strategies are still in harmony with your current financial reality. Regularly tracking expenditures might help identify new spending habits and address any potential issues before they escalate. Getting back on track could enhance the likelihood of reaching your goals and bolster your confidence as you plan for 2025.

• Establishing a thoughtful holiday spending plan is also wise. The last thing you want is for unchecked expenses during November and December to derail your financial objectives for 2024 and beyond. Setting limits for year-end expenditures can facilitate a strong finish and prepare you for a successful start to the new year.

• Eliminating a minor debt can foster a sense of achievement as you progress towards larger debt resolutions. Typically, the debt avalanche method—which focuses on extinguishing high-interest debt first—is a recommended approach. However, employing the debt snowball method, which targets the smallest debt balance first, might lead to quick wins this October, generating momentum for improved financial practices in the coming months.

• Reevaluating your retirement contributions is another prudent financial strategy, ensuring alignment with your long-term ambitions, especially if you have specific financial targets to meet by year-end.

Concluding the Year Positively

When setting goals in the autumn months, aim for objectives that are realistic and achievable within the remaining three months of the year.

Guntrip advises starting by clarifying your monetary values: consider how financial matters influence various aspects of your life and determine what is most significant to you. Following this, formulate clear, prioritized financial goals that resonate with your values, such as eliminating debt or establishing an emergency fund, ranking them by priority. Creating a values-oriented budget can also be beneficial. Lastly, put actionable plans in place to achieve these goals through methods such as budgeting, high-yield savings accounts, and automated savings contributions.

Even if your specific goals are not yet clear, maintaining an intentional mindset towards spending during November and December can be advantageous, as Guntrip suggests. For example, planning your holiday expenditures in advance can help prevent excessive credit card debt and depleted savings. This approach can spare you from concluding the holiday season feeling overwhelmed and discouraged regarding your larger financial ambitions.

While TikTok trends may be imperfect, their core message carries value: initiating changes in October can pave the way for a strong finish to the year, allowing for a smoother transition into 2025 with enhanced financial stability.