How the 'October Theory' Can Help You Reset Your Financial Goals

The idea of “October theory” is blowing up on TikTok, and the gist of it is simple: Fall symbolizes change and fresh starts, and it's a perfect time to reassess your goals and values. With fewer than three months left in 2024, it’s the perfect opportunity to check in on our progress and realign our financial goals in particular.

Like with "loud budgeting," "spaving," or "underconsumption core," the financial twist on October theory is yet another trendy term for something that's existed forever: being mindful with your money. As the seasons change, people feel especially introspective, making October an ideal time to reflect on the past year and reset financial habits.

How to reset your financial goals

Making financial adjustments in October allows people to gain momentum, set realistic goals, and start the new year with a sense of progress and accomplishment already in place. Instead of picking up new habits in January, "starting in October provides a head start and could make financial changes more sustainable in the long run," says Julie Guntrip, Head of Financial Wellness at Jenius Bank.

For those who have strayed far from their ambitious resolutions of 10 months ago, Guntrip lays out some actionable tips to get your financial goals back on track before the end of the year.

• Revisiting your budget could be a good idea to help ensure that your spending, saving, and debt repayment plans still align with your current financial circumstances. Tracking expenses regularly may allow you to spot new spending patterns and catch changes before they potentially become troublesome. Getting back on plan may help ensure you achieve your goals by year-end and potentially boost your confidence as you set goals in 2025.

• Creating an intentional holiday spending plan could also be a good idea. No one wants their financial goals for 2024, and potentially 2025, thrown off by out-of-control spending during November and December. Setting boundaries for year-end spending could help you end stronger and set yourself up for a solid kickoff to the new year.

• Paying off a small debt may help create a sense of accomplishment as you progress toward larger debt repayment goals. The debt avalanche method—paying down high-rate debt first—would typically be a recommended approach. However, the debt snowball method, which tackles the smallest debt balance for repayment first, might allow for a quick win in October. This could help develop momentum for good money habits in November and December and optimism for the new year.

• Revisiting your retirement contributions could be a smart financial move to ensure you’re on track for your long-term goals, especially if you’re trying to hit specific dollar amounts by year end.

How to finish this year strong

If you’re setting goals in the fall to achieve by Dec. 31, do yourself a favor and make them realistic, meaning something that you could actually accomplish in fewer than three months.

Guntrip says to start with identifying your money values: assessing how money impacts various areas of your life and articulating what matters most to you. Second, establish clear, prioritized financial goals that resonate with your values, such as paying off debt or saving for emergencies, and rank them by importance. You might even set a values-based budget. And third, set plans in motion to accomplish the goals using tactics like budgets, high-yield savings accounts, automated savings contributions, etc.

If you’re not exactly sure what your specific goals are, you can still "approach November and December with an intentional spending mindset," says Guntrip. For instance, plan spending for the holidays in advance, so that year-end purchases don’t leave you with extra credit card debt or drained savings. It’s a potential way to avoid exiting the holidays feeling behind or de-motivated for larger goals.

TikTok trends are far from perfect, but the underlying message is worthwhile: Making a change in October could help set you up for a strong finish to the year, making it easier to enter 2025 with your finances in better shape.