Financial Resolutions for 2022

Financial Resolutions for 2022

 
For many, the beginning of a new year feels like a fresh start - it’s an opportunity to reflect on your successes and shortcomings from the previous 12 months and set new intentions for the year ahead. One way to make the most of this year is by setting financial resolutions to establish healthy spending habits and maximize your wealth.
 
To help you get started, we have made a list of our top financial resolutions for 2022. You don’t have to set out to achieve them all, but this list is a great jumping off point to boost your financial confidence.

 

1. Reassess your personal and financial goals

It may seem obvious, but goal setting is a core practice in professional financial planning. The first step is sitting down and reflecting on what you want to achieve in the next 12 months, 5 years, 10 years and so on. From there, you can outline the actions you will need to take in the next year to set yourself on the path for success.
 
We highly recommend sitting down with a financial advisor to help you align your finances with your goals. Whether you want to retire earlier, make a significant life purchase or contribute more money to charity, an advisor can help you get started.

 

2. Track your spending more closely

One of the most effective strategies to save more is by tracking how much you spend. While it can be easy to budget loosely, tracking your spending closely can help you identify if and and where you are overspending or where you can cut back. Now that the holidays are over, it’s a great time to start an excel sheet or download a budgeting app to monitor your month-by-month finances. You may be surprised by what you find!

 

3. Invest in yourself

Considering the goals you have set, how can you invest more in yourself and your future? Maybe you want to adopt a new hobby, move to a new city or learn a new skill. Think about how you can use your money to enrich your life, professionally or personally.

 

4. Improve your credit score

We all know the importance of maintaining a good credit score, but how much do you think about it day-to-day? If you don’t have the best track record, this could be an especially valuable goal for 2022. Two key ways to raise your credit score are by keeping your credit utilization rate under 30% and paying your bills on time. Make sure you monitor your spending and if you can’t remember your billing dates, consider setting up automatic payments!

 

5. Amp up your retirement contributions

Retirement planning may not be the most glamorous way to spend your money, but it is one of the most valuable ways to invest in your future. This resolution has no age restrictions, in fact, the younger you start saving, the better!

 

6. Make a plan for your benefits

If you have employer benefits but have never taken advantage of them, make sure you familiarize yourself with them this year. Many companies reset benefit funds at the beginning of the calendar year, and they can be seriously valuable, from gym membership discounts to health and wellness opportunities. If you’re not sure where to find the information, check on your company portal or get in touch with HR.

 

7. Align your finances with your values

One of the most fulfilling ways to use your wealth is by aligning your spending with your values. Whether you want to contribute more to a philanthropic cause or invest in sustainable resources, there are many ways you can use your money for good and a financial advisor can help you find the most cost-effective way to do so.
 
 
We always recommend being intentional and personal with your financial goals – find out what is important to you. Starting with even one of these resolutions is a fantastic way to strengthen your financial confidence and set yourself on a path for success.
 
If you have any questions about your goals and how to achieve them, we would be happy to schedule a meeting or consultation to ensure you can make the most of your wealth in 2022.

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