New Year's Financial Resolutions.
If 2021 threw your finances for a loop or was a continuation of the challenges you encountered in 2020, a financial resolution might be on your list of ways to improve your life in 2022.
New year often means setting new goals including your personal finances. But we sometimes make new year's resolutions that are overly ambitious, or we focus on goals we aren't really invested in, which can lead to quick disappointment.
Instead, try concentrating on financial resolutions that both within your reach and top priorities. I will help you draw up a few mindset changing resolutions that can help put you on track to achieve your financial objectives in 2022.
Lets get started:-
#1. Start investing
While it may not be the easiest resolution on this list, investing is one of the best ways to build your wealth. If you don't think you have time to start investing, I get it. Investing can take time to understand. We've done our best to lay out the different investing methods here... While it's totally possible to invest without the help of an advisor, many of us are choosing the advisor route because, let's be honest, it's just so much easier. Remember that advisors also include robo-advisors, which can help you decide what to invest in including when to buy and sell. #2. Set a starting point
Before you can begin saving more, spending less and creating a budget, figure out what your financial picture is. Take a look back at the past year to review your cash flow and your highs and lows. That's the first step to making a comprehensive and realistic effort toward achieving your financial goals. You don't have to get specific but it's helpful to consider what you hope to accomplish financially in the next year or two. For instance, is buying a house at the top of the list? Maybe finally taking a vacation after nearly two years is a priority. Reviewing what you need to save for is useful as you start to prep your financial blueprint.
#3. Pay off your credit card debt
If credit card debt is bogging down your financial success, why not make it a goal to tackle it in the new year? Paying off your credit card debt is an important step in becoming financially healthy. If you don't pay it off, you are doing a serious disservice to your credit score. When searching for ways to pay off your debt, I recommend opening a balance transfer credit card.
#4. Aim for small improvements
If your resolution is too big, it will be hard to see your progress. If your resolution is to be financially stable by the end of 2022, it's a broad goal that doesn't break down what you need to do to achieve this. You don't have any markers to signal when you've accomplished something, or identify anything that has changed. You need to self examine so you can bring specificity to your resolution. Setting a SMART goal requires that you set parameters around the behavior you are trying to change. Doing so may feel like pain at first but it forces you to make a plan that you can actually stick to. Breaking bigger goals into smaller resolutions can help make your progress more attainable and allow you to see results more quickly even if that progress is small.
#5. Revisit your goals frequently
Make sure that your financial goals remain relevant to your current circumstances and revise your goals when needed. For instance, if your salary changes, you lose your job or start a family, your priorities are going to shift and your goals should reflect these new considerations. Give your budgets, investments and savings a double-check to make sure you're in a good position to achieve your new goals and adjust accordingly.
Conclusion...
As 2022 begins, you need to start thinking about what you can do to make you finances stronger, because we never know when a financially challenging year will hit again.
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