5 financial resolutions for 2022 that will really hold up
A New Year is a great time to change old habits for the better, especially when it comes to your financial well-being. But those wacky financial ideals you wish you could achieve are not the ones that will stick. For example, if you know that resolving to eliminate all discretionary spending for next year will never work, why waste time pretending it will? Instead, consider financial resolutions that are not only worth the effort, but also that you think you can achieve.
Learn more: Budget 101: How to Create a Budget You Can Live With
See also: Tips for keeping your finances in order without sacrificing what you want
Take the time each month to review your “why”
When you don’t have a compelling reason to make the effort to do something, chances are it won’t become a long-term habit. So come up with a “why” for every financial resolution you make. For example, if you decide to avoid shopping online for a month to save money to put on your credit card bill, ask yourself why this particular resolution is important to you. A good “why” is that you don’t want to be stuck with a high credit card balance that you have to pay interest on every month.
Once you’ve written a “why” for each financial resolution you’ve made, review them each month to make sure they’re still true. If not, come up with some compelling new reasons to help you stick with it.
Tips to save more: unplug those appliances that increase your electricity bill
Save money by doing things yourself
Do not panic. You don’t have to give up everything you love to have done for yourself, especially if it’s something that makes your life easier and more organized, like hiring a housekeeping service. .
“My favorite financial resolution is to evaluate the ‘little luxuries’ you treat yourself to on a regular basis that you could potentially do on your own,” said Trae Bodge, smart shopping expert for TrueTrae. “Maybe he goes to the car wash once a month or he gets regular
manicures. If you agree to do this thing yourself instead of paying for
he, while committing to put that money aside, imagine how much
you would save in a year.
Improve Your Credit Score
A strong credit rating can be helpful in many ways, especially when it comes to saving money on interest. One way to improve your credit score is to commit to paying off your credit card balance each month.
“If you can get to the point where you regularly use your credit card and pay it off every month, your credit score will increase by leaps and bounds,” said Scott Stanley, CFP and founder of Pharos Wealth Management. “You will also get rewards from your credit card company if you regularly use your credit card responsibly. The benefits have a cumulative effect, so get to work developing good credit card habits as soon as you can! “
Explore: make a debt-free future your reality
Start saving or increase your contributions in a 401 (k)
“A good resolution might be to start or increase your
contributions to your 401 (k), ”said Tania Foster, Founder and Financial Advisor, TF Wealth Advisors. “Some people find it hard to put aside
money for retirement or don’t know where to start, and a 401 (k) is a great
starting point. Set or increase your contributions for the new year and
reassess if necessary. The advantage of your 401 (k) contributions is that
it’s coming out of your paycheck – if you don’t see it, you won’t miss it. Together
your contributions now and get into the habit of saving. You will not have to
make changes unless you receive a bonus or a raise, and
in most cases, your employer will give you the option of making these contributions
automatically so you don’t have to do much.
Get the business match
Speaking of 401 (k) contributions, make sure you don’t leave any money on the table.
“Many employer-sponsored 401 (k) plans offer a match with the company,” said Brian Mirau, founder and president of Mirau Capital Management. “For
For example, if a company’s 401 (k) match is 3%, it matches up to 3% as long as
the employee contributed the same amount in their 401 (k). Make it a new one
Year resolution to check how much you are contributing to your
employer-sponsored pension plan to ensure you are contributing enough to
get the business match. Otherwise you are leaving free money on the table which
could be invested and grow over time. This resolution is great because a
a simple adjustment of your pension contributions can increase the amount
you save for the future.
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This article originally appeared on GOBankingRates.com: 5 Financial Resolutions For 2022 That Will Stay True