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3 ways 2022 can be your best financial year yet

It’s a new year in 3 days and your chance at a fresh start! Believe us when we say it is worth planning for the year ahead with your finances.

New Year is right around the corner and it’s time to get your money game faces on with your financial resolutions. What better way to create a game plan for your financial goals and plan on how to achieve them?

In this article

It’s time more to slash those debts and spend better. And that means New Year, new finances? We sure hope so. Here are the top three steps you can take right away to set yourself up for your best financial year yet in 2022. And no, it does not involve getting a new job to earn more money. If you want to, go for it!

However, we’re talking financial security, and believe us when we say it is worth every minute of the work you put into it. There are three ways you can build your financial plans for a fruitful 2022, so let’s get busy planning your best financial year yet!

Set your goals and score them

Goals are critical and they are what lead to financial success. They will give you a sense of direction and push you to change or accomplish something in life. You can’t just wake up one morning and decide that shred 20 pounds that same day. Instead, you set a goal: “I will lose 20 pounds in 6 months” and then you work towards that goal every day.

Same with your finances. Be specific with how much you want to save. It could be saving $1,000 by March or paying off $20,000 of student loan debt by December 2022.

You will also be able to measure your success and give your money a purpose all year long. What better way to have the best financial year in 2022.

January budget first, the rest will follow

Yes, yearly goals have been set and you’re all ready to slay them. How though? You break them down to monthly goals and see what works for your budget. Ensure you cross-check your budget before you make financial decisions, like if you’re sending $500 to debt? Or if you want to invest $800 into an index fund, add it to your budget.

Try eating out less and if you do remove some money from your dining budget and add it to your grocery budget. Here’s how you can monitor your monthly expenses.

Set next month’s budget before the month has started, so when you can step into the 1st of the month with a plan in place. Check-in on the plan and ensure you are doing what you said you would hit your goals.

Don’t wait to automate 

If you want to save more money or hit a certain amount in your investment account, automate a transfer into your savings each month. As most people say, “set it and forget about it”. Don’t forget it completely, that is sad, when you need it most you need to remember where your money is.  

But, honestly though setting up an automatic transfer, or a direct deposit from your paycheck to another account will help you achieve your goals so quickly. Now that’s what we call savings goals!

The bonus for your best financial year

Employers — most of them — offer a retirement investment match, that is if you’re investing enough money for them to match! This is your best chance to say hello to free money!

What do we mean? Let’s just say you make $1,000 a month and you decided to do a 3% investment which sums up to $30. You’d contribute $30 each pay period and your employer will also put in $30, matching your 3%. That means. *drum roll* your total contribution is 6%, or $60. Way to go! Free money two for one.

This page is purely informational. Line does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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