2022 is quickly approaching which means it’s time to pick a resolution. You may be surprised just how much financial progress you can make in the span of a year, so if you’re looking for a resolution, you’re in the right place. We are sure that these goals will not only be beneficial throughout the year but well into the future.
It’s Time to Make a Budget (And Stick to It)
One of the most common New Year’s resolutions is to finally create a budget, but most of us last until the end of January then forget about it. This year, make it a goal to stick to your budget which means you’ll have to make sacrifices to do so. Set goals for the end of each month and reward yourself when you meet them so you can stay motivated.
Eliminate Expensive Habits
This resolution is tricky to stick to unless you actually write your goals down. Whether your expensive habit is the morning coffee run, going out to eat, impulse shopping or something else, a habit is difficult to break without an accountability partner. Ask someone you see a lot like your spouse, roommate or sibling to hold you accountable for your purchases.
Build Good Credit
The best ways to improve your credit score are to pay your bills on time and to pay off your credit card in full each month. If you already have a good credit score, make it your goal to keep it high. If your score could use some work, 2022 is a great year to improve it.
Create an Emergency Fund
You may think you’re good to go if you have some money in your savings account, but financial advisors recommend that you open a separate savings account strictly for your emergency fund. This money is here to help when you face those unexpected purchases, like car problems, medical expenses, urgent home repairs, job loss and more.
Make Saving for Retirement a Priority
It’s never too early to start saving for retirement. If you haven’t started saving, an IRA is a great option and something to consider. Setting up automated savings is a good way to make sure you’re putting enough money away each month.
Start Paying Off Your Debt
Before you can achieve your other financial goals, it’s important to start with paying off your debt. Pick a method that works for you, such as the snowball or avalanche method. The snowball method involves paying off the smallest debts first before moving onto the bigger ones, while the avalanche method includes paying off as much as you can towards your highest-interest debt while making the minimum payments on the rest of your debt.
Looking to open a savings account, build your credit score with a credit card or open an IRA? We offer the resources you need to have a successful financial year. Contact us to learn more!
