Embrace the allure of a fresh start with the new year. It’s a great time to commit to your money goals, budget better, pay down debt, ditch bad habits and improve your financial picture to reach your goals.
If you want 2022 to be a better year for your money, consider making these financial New Year’s resolutions.
1) Budget, budget, budget
Your entire year’s financial success likely rests on having a decent budget. “One important financial resolution for 2022 should be putting together a financial plan,” says Cynthia Pruemm, an investment advisor and the founder and CEO of SIS Financial Group in Hoffman Estates, Illinois.
“Part of this process is doing a financial analysis of your income, expenses and investments.”
If you’re discouraged by the idea of being buried in data and can’t afford an accountant, Pruemm suggests using a software program like Quicken it will surely help you to evaluate things for you. 🙂
2) Save something every month
One thing that should definitely go in your budget is how much you plan to put away in an emergency fund or savings account – or both. Pruemm says:
“Another resolution should be saving every month regardless of the amount,”
If you’re struggling with how to save money, Pruemm suggests , “Where your spare change on each debit card or credit card transaction gets set aside into a separate savings account. You will be surprised how quickly all that spare change can add up.”
And when you’re shopping online, she says, “shop for the same products through (cash-back websites). Since this is not a sponser post so I won’t be adding the name of apps lol! You can google them yourself.
3) Evaluate your eating-out budget
Finding cheaper restaurants – or, of course, you could always cook more.
“It isn’t unusual for a couple to eat out three to four times a week when both are working. Whether this is takeout or dining in, this could easily add up to $100 if you go for a little extra food cafe for every couple of week or more.
It’s even worse for your budget, of course, if you have kids and are eating or ordering out three to four times a week.
4) Review your subscriptions
Take a look at every service you subscribe to and see if there are any you could eliminate, it happens all the time – you sign up for a free 30-day trial and forget to cancel when the trial ends.
You tell yourself you’ll cancel the subscription before the next automatic deduction and life happens and you forget yet again.
5) Start investing
Investing goes hand-in-hand with the “pay yourself first” resolution that we mentioned earlier.
“Set a monthly plan of investing x dollars every month and stick with it, regardless of what is going in the markets,” says John Hunter, the MBA program director and professor of practice at Le Moyne College in Syracuse, New York.
There is plenty of guidance available on building a beginner investment porfolio. Hunter advises investing with a longer-term mindset.
Follow the historical market returns and don’t even think about the ups and downs of the markets. Don’t try to time the markets. The markets are smarter than you are. Think long term, act long term, be disciplined and you will get to your goals.
If you cannot reduce your debt to zero, try to minimize the balance. In order to enjoy your financial freedom, it is important that you have control over how much money you owe, no matter what the purpose of the debt is.
Remember, in the end, you want to wake up each day knowing that you have control over your financial situation and hence over your life!