With the New Year comes new resolutions. This upcoming year, challenge yourself to take your financial wellness into your own hands. By setting strong financial New Year’s resolutions for 2022, you set yourself up for success.
If you don’t start your year with goals, it’s easy to get off track. Embrace the excitement of a fresh start by committing to money goals, budgeting, and strong financial habits. Here are 10 financial New Year’s resolutions for 2022 to inspire you.
1. Create a Budget
If you don’t already have a budget, now is the time to make one. Your year’s success depends on a strong foundation (aka you need a budget). Using a budgeting app, creating your own spreadsheet, and taking a look at your income/expenses is the best first step to start 2022 out strong.
2. Save on a Monthly Basis
Next, consider how much you can save on a monthly basis. It’s easy to feel discouraged by not being able to save large amounts, but any little bit helps. Regardless of the amount, put funds away each month towards your emergency savings or rainy day fund. Even if it’s just $20 a month, it helps in the long run.
3. Review Your Superfund
Another important step in 2022 is to take inventory of your superfund. This is your retirement savings, and it’s essential that you’re on track. Consider your retirement goals, how much you’ll need to budget for retirement, and your current standing. You might need to make some adjustments, and it’s better to do that sooner rather than later.
4. Cut Down on Spending
This year, commit to cutting down on unnecessary spending. If you’re like most people, there are likely some areas of your regular budget that could use a bit of trimming. You might dine out fewer times a week, cut down on streaming services, or reuse old clothes instead of buying new ones.
5. Cancel Unused Subscriptions
Along those lines, are there any unused subscription services you can cancel in 2022? This is one of the best financial New Year’s resolutions you can do quickly. Take a look at your account statement to see if there are any subscriptions you can live without. Odds are, there are a few you hardly use but haven’t bothered to cancel!
6. Pay Down Your Debt
Next, one of the best financial resolutions for the New Year is to pay down your debt. Living debt-free is an ambitious goal for many, but it’s doable with the right plan. Consider the debt snowball vs. avalanche method to see what makes the most sense with your budget. From there, take real action.
7. Consider a Mortgage Refinance
In 2022, if you’re considering a mortgage refinance, now is the time to do it. As a homeowner, it’s important to take advantage of the best rates around. If you haven’t refinanced yet, this might be the best chance you have. Check your current mortgage terms and rate to see if this is a good fit for you.
8. Start an Emergency Fund
If there’s anything we learned from the past 2 years, it’s that you can never be too careful. Life can change in an instant. You might unexpectedly lose your job, or there could even be a global pandemic. To prepare for anything, start your own emergency fund. This is the best way to build yourself a cushion for the future.
9. Join Rewards Programs
While credit cards aren’t always the right fit, some can be a great way to earn rewards. For example, if you’re planning a holiday in 2022, a travel rewards card could help you save. However, make sure you’re taking advantage of the points and rewards you earn and paying your balance off as much as possible.
10. Give Back
Lastly, the best financial New Year resolution for 2022 is to give back. This is known as conscious consumerism. When you pay attention to how the brands you like serve the community, you make a real impact. The same is true for donations, shopping local, and so on. How do you use your money to create a brighter future?
Bonus: Check Your Credit Rating
Here’s a bonus just to make sure you start 2022 off on the right financial foot. You should get in the habit of regularly checking your credit rating. This is especially true at the beginning of the year. Not only can you spot potential errors that could impact your credit, but you’ll know whether you’re in good standing.
Make 2022 the Year of Financial Wellness
Are you ready to enter 2022 with confidence? Thanks to these 10 financial New Year’s resolutions, you’re ready for anything. These are both small and large steps that can be handled over time. There’s no such thing as being too proactive! Any step forward is a step towards success.
Do you need help making better financial habits in the New Year? If so, you’re not alone. It can be hard to take control of your money, savings, and debt, but the team at Debt Busters are here to help. Contact our team today to schedule a free call.