The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Are your finances getting a little out of whack? The new year is a great time to start fresh and get your finances in order. Here are some simple and effective financial resolutions you can make for 2022.
Creating and following a budget is one of the best ways to get your finances in order. It can be tough, but it’s worth it in the long run. Start by figuring out how much money you make and what your regular expenses are. From there, create a budget that allows you to live comfortably within your means.
If you have debt, you’re far from alone. According to recent statistics, Americans have a combined 14.6 trillion dollars of debt as of Spring 2021.
Make a plan to pay down your debt in 2022. Start with the highest interest rate debt and work your way down. You’ll be surprised at how much money you can save by paying down your debt.
Debt consolidation can also be a great way to get your debt under control. By consolidating your debt into one monthly payment, you’ll make it easier to stay on track and pay down your debt.
When tax season hits, it’s easy to feel like you’re getting the short end of the stick. But by planning and making smart tax moves, you can save a lot of money.
For individuals, make sure you’re taking advantage of all the tax deductions and credits available to you.
Business owners and investors have a lot more opportunities for deductions and deferrals, but they also have more work to do when tax season rolls around.
Luckily, there are plenty of professional resources available to you. For instance, Kay Properties and Investments LLC has a page for property investors and business owners where they have the little-known 1031 exchange explained, which involves “swapping properties held for investment or business purposes.”
The key is making a resolution not only to prepare your taxes but also to seek out professional advice. You don’t want all of your hard work preparing your taxes blown up in an audit.
Emergencies can happen at any time and they always seem to happen when you least expect them. That’s why it’s important to have a savings cushion to fall back on. Start by setting aside a small amount of money each month until you have enough saved up to cover your emergency expenses.
There are plenty of ways to improve your credit score. One of the best is to make sure you’re always paying your bills on time. You can also improve your credit score by getting a secured credit card or by adding an authorized user to one of your existing accounts.
Credit monitoring services can also help you keep an eye on your credit score and make sure there are no errors in your report.
If you’re like most people, your savings aren’t where they should be. But by making smart choices with your retirement accounts and working on increasing them each year, you can set yourself up for a comfortable retirement.
The best way to save for retirement is through a 401k or IRA account. These accounts offer tax advantages and allow you to save money on a pre-tax basis. You can also contribute more money each year if you make a resolution to do so.
Going out for dinner or ordering delivery too often can eat into your budget. But by cooking at home and packing your lunch, you can save a lot of money each month.
There are plenty of recipes online that are both healthy and affordable. You can also find great deals on produce at local grocery stores and farmers’ markets.
Investing is a great way to make your money work for you.
If you don’t have much experience investing, you may want to start with some easy investments like index funds. Once you’ve built up your confidence, you can move on to more complicated strategies that are riskier but have the potential for greater returns.
If you’re carrying high-interest debt, like a credit card or student loan, you may want to consider refinancing. By refinancing, you can get a lower interest rate and save money on your monthly payments.
To see if refinancing is the right option for you, use a refinance calculator to estimate how much money you could save over time.
This one may not be as fun as some of the others, but it’s still important. By writing a will, you can make sure your loved ones are taken care of after you’re gone.
You don’t need an attorney to write a will. There are plenty of online resources that can help you get started.
So there you have it, ten simple financial resolutions to help you get ready for 2022. By making a resolution to improve your finances this year, you can set yourself up for a better future. Happy New Year!