Build your future with these money goals. Use the energy of the New Year to fuel your journey to a bright financial future.
Exercising, eating healthy, traveling, and ridding ourselves of bad habits are all common New Year’s resolutions. What’s missing? That’s right, finances. Year after year, we hope to do better with our money. This is great, and rightfully so. Our finances are important and should be among our top priorities.
But where do you start? To help, here are 10 key suggestions to serve as your guide. Let’s make 2022 the year we take action.
10 Money Goals To Build Your Future
- Have 6-12 months of emergency savings. Give yourself something to fall back on for unforeseen situations like medical emergencies, car repairs, or changes in work hours or employment.
- Create a budget and stick to it. Know where your money is going. Look at your last few months of bank and credit card statements to use as a guide. Eliminate unnecessary expenditures, set a savings goal, and follow through.
- Start building good credit. Establishing credit is important for everyone. Good credit will get you approved for loans and help you save by securing better rates.
- Contribute to your retirement plan. The earlier you save, the more time your money has to earn compound interest and the less obligated you are to save in the future.
- Get insured. Life insurance assures you that your family members won’t bear the cost of your passing. In addition, it can help secure your family’s future.
- Pay off debt. Save on interest by making a plan to pay off high-interest debt. When you rid yourself of a payment, redirect funds to other debt if applicable or to your savings or retirement account, where it earns dividends.
- Take advantage of employer match programs. Some employers will partially match contributions to Health Savings Accounts and retirement accounts (like 401ks). This is free money for two very important causes.
- Live within your means. Spend less than you make. Taking on additional debt to finance your lifestyle is not wise. Sounds simple enough, right?
- Be a smart shopper. The internet is a great tool for comparing prices and ensuring you’re getting the most value for your money.
- Cut costs wherever possible. Evaluate your spending. Can you downgrade or eliminate an expense? For example, eliminating cable can save you hundreds of dollars a year.