The 5 Best Financial Moves You Can Make in October 2022

It pays to check all of these off your list.

Ah, October. For many of us, there's nothing better than cool air, sweater weather, and leaves changing colors. But October isn't just a great time to get outdoors and buy everything pumpkin spice–related. It's also a great time to take control of your personal finances. Here are a few essential moves to make this month.

1. Boost your emergency savings

Experts have been warning for months that a recession could hit in the near term. So October is a great time to work on growing your emergency fund. At a minimum, you should aim to have enough money in your savings account to cover three full months of essential expenses. For more protection, aim higher. Some experts are even saying that eight to 12 months' worth of expenses in savings isn't unreasonable.

2. Pay off credit card debt

If your goal is to start the new year with a clean financial slate, then now's the time to work on paying off your credit cards. Take a look at your balances and first try knocking out the ones that have the highest interest rates attached to them. You can also try doing a balance transfer, where you move your various balances onto a single card -- ideally one with a low interest rate or a 0% introductory rate.

3. Ramp up your 401(k) contributions

You only have until Dec. 31 to fund your 401(k) plan for the 2022 tax year. So if you're looking to get closer to hitting the annual maximum (which is $20,500 if you're under 50 or $27,000 if you're 50 or older), now's the time to tell your payroll department to start deducting more money from your paychecks. If you have a traditional 401(k), the more you contribute (up to the annual limit), the more tax savings you get to reap. Plus, the more you put into your account, the larger a nest egg you stand to retire with.

4. Plan out how you'll spend your remaining FSA funds

If you have money sitting in your FSA (flexible spending account), you don't want to wait too long to use it up. Many plans require you to deplete your balance by the end of the calendar year or otherwise forfeit funds. Think about any medical visits you've been putting off and schedule those appointments. You can also try stocking up on eligible over-the-counter expenses that are FSA-eligible, like ointments and wound care products.

5. Review your benefit options during open enrollment at work

October is when many companies present workers with their benefit choices for the upcoming year. Take the time to figure out which health plan to sign up for, whether you want to contribute to next year's FSA, and what other perks you want to elect, such as pet insurance, if your company offers it.

October is a great transition month -- it's definitely not summer, but not quite cold. But in the midst of enjoying the great weather and the change of season, take some time to assess your finances and make these important moves.