The Halloween candy is dwindling, and although retailers would have us believe the holidays are around the corner, there are still weeks ahead of 2023 before we can cozy down to prepare for the new year. So what better time than to sit down with a notebook and a warm drink and dig into our budgets? Who said we have to wait for the new year to realign, anyway?

While setting our goals and cracking open those new planners is traditionally a January affair, November is really the perfect time to reset and get our finances on track. Because as we have become all-too-familiar with, it’s impossible to truly predict what comes next. But, by making positive changes before the year is through, we can not only finish off 2023 in one piece but move into 2024 feeling empowered instead of overwhelmed, no matter what the uncertain economic landscape throws our way.

Taking stock

Review spending since summer to see where budgets succeeded and fell short. Were there overspent categories? Underestimated essentials? This insight helps create an accurate 2023 holiday budget.

This insight is an important first step in helping you create a more accurate budget for the coming months – because until you know where your money is going, it is impossible to know where it could be better spent!

Build a buffer

Inflation remains stubbornly high, reminding us living in Canada is expensive. While we likely won’t see major deflation, proactively planning for sustained prices matters.

Look closely at inflation-impacted expenses like groceries and utilities that may need re-allocation. Consider buffering for potential rate hikes on debt payments.

But remember that moderate inflation, such as that highly sought-after 2% target, is actually a sign of a healthy economy, as opposed to harmful deflation. For prices to come back down right now would require periods of deflation, which can severely damage an economy and employment if sustained long-term. So, while we can’t likely look forward to a return of the grocery prices of yesteryear, we can proactively plan our budgets accordingly.

Keep your eyes on your renewal

If you are facing renewal soon, analyze spending and savings patterns to know where finances stand pre-renewal. Get clear on your spending and saving patterns so you know exactly where your finances stand before renewal.

If you, like most homeowners renewing this year, find yourself renewing in a much higher rate environment, it’s imperative that you have a solid picture of how much of a payment increase, if any, you will be able to afford. Starting to review your cash in and out well in advance will ensure you have plenty of time to make a plan to restructure as necessary!

You might also consider consolidating high-interest debts into your mortgage at renewal to consolidate payments into one monthly amount. If you have several debt repayments you are responsible for each month, rolling them all together could save you not only in monthly cash flow but in interest over the long term.

Exploring alternatives

Re-evaluate your current purchases – did you really need to spend on that? Seek out lower-cost providers for everything from insurance to cell phone plans, utility companies, subscriptions, and more. Even minor savings add up over the course of a year.

Consider temporarily suspending services providing less value and get serious about separating needs from wants. Saving money doesn’t have to be about depriving yourself – it’s just about getting creative.

Increase your safety net

Even though things appear to be looking up, there is still a lot of financial uncertainty ahead, so building up an emergency fund is a great idea.

Aim for enough savings to cover 3-6 months of living expenses. This provides a cushion if you face a job loss, unexpected costs, or potential unforeseen challenges in making payments.

Commit to consistency

If you (like most of us) tend to crack open a new planner on January 1st and fizzle out by February, then committing to a refreshed budget can be a challenge. But, by closely monitoring your budget over the final part of 2023, you are setting yourself up for a much strong 2024.

Entering 2024 with a solid understanding of your finances, room built in for inflation and potential rate fluctuations, and a stronger emergency fund is the best way to step into uncertainty. Don’t wait for the new year—use the fall months to take control and reset your budget for success now.