New Year's Money Resolutions for 2022
Most people make resolutions but never act on them. Here’s your chance to break that cycle and actually change your life in a big way with these 8 Money Resolutions. Simple financial tips that you can follow in 2022.
Budget, Budget, Budget
Save something every month, even if it is $20. It is about the habit as much as it is about the amount. One of the best ways to start is to cut out a small weekly expense, like a coffee, and put the money into your savings. It’s $5 per week or $20 a month just like that. Grow the savings amount as quickly as you are able to.
Look to reduce your expenses any way you can. Most people eat out far more often than needed and can lose $2-300 a month just eating out. Check any subscriptions you have. People are often surprised at things they are paying for (especially online) that they are not using but are auto-renewing without knowing it. Many online services do not notify you of renewals because they want to keep your charge going.
Can You Live on Less Than You Earn? No Matter What?
Most people set up their budget so that ALL their income is accounted for or spent each month. You need to reverse your thinking and live on less than you earn. No matter what! Almost everyone forgets to have contingency plans, savings plans, etc. Budget, so there is something left every month.
Best Ways to Save Money
The best way to save money is to budget for it. But you should also review all your expenses. You can often get all your expense information right from your bank statements online. Most banks even categorize it for you. You can never remember every little expense you have each month, but reviewing your statements will really help in reducing or eliminating expenses… and increasing your income or savings.
Get Out of Debt – Completely
No matter what’s your situation, you can accomplish this goal. Millions of people, some with high debt, have been able to wipe it out. Getting out of debt means that you can take control of your income, savings, etc.
The first step for most is to pay off their credit cards! Most have fairly hefty interest rates, and often people overuse them as if they were cash. But then you end up paying mostly interest every month forever. Take control, stop using the cards and start paying them down. This will also really help your credit scores go up, which means you will get lower interest rates when you really need them, like buying your next car.
It will leave you with more money for savings and investing as well as some occasional spending. You will not have to worry about that $XXXX you spend on debts and interest every month that is just wasted dollars. It will also make it easier for you to change jobs or even quit to start a new career. Half of all people say they would change jobs if they could as they do not enjoy their work.
Make a Will
No matter your income, you should have a goal to leave your loved ones a little bit better off than you have been. That means you should have a will. Depending on the state you live in and your ‘estate value,’ you may also need a trust. Either way, find a good estate planning attorney who can guide you through the process and options available to you.
A simple will may be all you need. Without one, any assets you have will likely go through a court proceeding, probate, and half or more of your assets will not go to your children or heirs.
Create an Emergency Fund
Most people think that a small emergency fund would be nice to have. Then they use it when something happens and start saving for a new one. However, the mindset should be to build and continue building your emergency fund. Then as you use it, you will still have some funds there. You never know when emergencies will happen or how often, so plan accordingly.
Start Saving for Retirement
If you can understand the concept of compound interest, you have learned the #1 concept for long-term savings and building your retirement fund. It doesn’t matter when you decide to retire or if you ever do so; you should start saving as young as you possibly can.
When you start investing, use professionals to guide you. You should seek a Financial Planner and CPA. Check references and do some homework before selecting any professional and make sure you are comfortable in your interactions with them. Most do-it-yourself investors do not have the knowledge or the time (like full-time professionals) to do their own investing. In fact, most fail at it and waste tens of thousands of dollars or more trying to do it.
Create Multiple Income Streams
This has been preached about for decades now, but few people actually do it. Maybe you want to start your own business but cannot quit your “day” job. A side business could be a good start. You can use the additional cash flow to help fund your retirement savings, emergency fund, pay off your debts, etc.
If you develop several income streams, you will no longer be dependent on a specific job ever again. No matter what, you have to take action and get started, it is often the first step that feels like the biggest.
Follow these tips to solve your cash crunch issues. However, if you still need extra cash, get a small loan with CashinaMoment. We have a large referral network of direct lenders to serve people in need of online loans. Open 24/7 and 365 days a year serving Americans coast-to-coast.
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