My interest in NCAA football started at a very young age due to a family connection to Tuscaloosa, Alabama. Choosing an undergraduate school was easy due to the connection. I picked my graduate school, not because of its football success, but because The University of Southern California was in the top tier for my chosen graduate program. Years later, I spent over a decade working at The University of Texas.
All three of “my” teams are currently ranked in the AP Top 25. If you follow football, you know that football programs need a strong fourth quarter to have long term success. So too with your financial health.
While I don't follow college football much anymore, my focus on the fourth quarter has not waned. How are you faring in Q4? Do you plan to finish strong or are you sitting on the sidelines with an injury? I encourage you to stay in the game and set yourself up for success in the new year. Here are a few tips.
Q1-Q3 Playbook Review
The first step in the Q4 game plan is to figure out what happened in Q1-Q3. Take a look at your cash inflows and outflows. What’s the bottom line? Did you spend more than you intended to? Did you have to take funds out of your emergency fund or savings? Did you have too much left over and didn’t invest it in a timely manner? Whether your accounts are overflowing or dwindling down, it’s important to know where you’ve been to set yourself up for future success.
Q4 Game Plan
Once you've analyzed your Q1-Q3 plays, you're ready to make your Q4 game plan.
If you currently have a winning season, these questions can help you develop your plan:
Are you keeping too much cash on hand?
Are there year end tax moves that you can make to reduce your tax bill?
Is your emergency savings adequate?
Should you invest more for the future?
Are you interested in charitable causes?
Are you contemplating a big purchase?
Are there any changes to your life goals?
If your season has been challenging, start by setting a budget for the remainder of the year. Budget considerations should include:
Set a budget for the remainder of the year.
Reduce high-interest debt, such as credit cards.
Talk to family and friends about expectations for the holidays, adjusting travel and gift plans early to mitigate hurt feelings.
Reduce non-essentials like dining out, entertainment, streaming services, fashion, and beauty purchases until emergency savings are in place.
Adjust thermostat settings to minimize utility bills.
Consider adjustments to living arrangements if you have experienced a major setback.
Explore part-time seasonal jobs to boost your income during Q4.
Reset for Next Season
If your Q4 game plan is successful, what changes do you need to update next season’s playbook to dominate all quarters next year? Connect with your Pioneer Advisor to review your Q4 strategy and set yourself up for success in the upcoming year.
