Make Money Resolutions This Year
Many people set financial resolutions at the start of the year in order to improve their money management skills. Our own term “New Year’s resolutions” has a negative connotation due to our own faults. Indeed, the lofty goals we set for ourselves on January 1 are frequently doomed to fail. But that’s generally because we haven’t spent enough time figuring out how we’re going to do it. Setting aspirational objectives that don’t take into consideration who we are now or the work required to achieve them is a recipe for disaster. This needs to change, and let’s make some changes in the process.
Let’s make certain money-making practices a habit! You can think of these as an easy financial task list or financial goals to help you make the most of your money in the next year. Not every assignment will appeal to everyone, but there should be enough diversity that you can find a few that do.
• Visualize
Take some time to reflect on 2021 as you celebrate the new year and consider what, if anything, you’d like to do differently in 2022. In 2021, what went well? What would you like to see happen in the year 2022? Was there something you’ve been attempting to put off that you can now get going on? Spend a weekend thinking about your goals for the year.
• You should spend less than you earn!
If you spend every rand you earn, you won’t be able to save for emergencies, invest for the future, or make large purchases without resorting to credit cards or incurring debt. You don’t want to be living pay check to pay check, waiting for your next dollar to satisfy your bills while also failing to accumulate wealth. The more money you can save rather than spend, the more quickly you will achieve essential financial goals and increase your financial stability.
• So, Let’s Start With A Budget
“Budget” is a harsh word for a lot of people. However, there are a variety of methods for keeping track of your monthly expenditures. If you’re not currently budgeting, chances are you’re engaging in certain spending behaviours that prohibit you from getting the most out of your money. You should make sure that part of your money is being utilized wisely to develop wealth and achieve your objectives. Budgeting for things you love might also let you spend guilt-free on items you enjoy. The most important thing is to create a budget that doesn’t seem restrictive, and then review it every few months or so to ensure you’re still on track.
• Keep track of your net worth
Calculating your net worth is a fantastic place to start if you want a good picture of your financial situation. This is basically your assets (cash in checking and savings accounts, investments, real estate, automobiles, and so on) minus your debts (student loans, mortgages, overdue credit card bills, etc.). To assess whether you’re working toward any savings or debt payback objectives, try doing this at the start of each month, along with your budget for 2022.
• Don’t Forget About Yourself
Stop splurging on payday! Sort your pay check as soon as it arrives in your email, so you’re less inclined to spend more money than you need. This is a money habit that you can adopt with little effort and that will benefit you greatly. Pay whatever bills you can as soon as possible. Put that “future you” money (the money you’re saving for various purposes) in a separate account that you can’t access while you’re monitoring your daily spending account. Set aside a little for any future non-monthly costs, like vet bills, auto repairs, and the like, if you have a savings account linked to your main checking account.
• Get Professional Advice
What’s your financial situation like? Consider seeing a financial therapist if your relationship is strained. These experts provide both financial planning and mental health treatment, assisting clients in processing their underlying thoughts about money while formulating plans for retirement, savings, investments, and other objectives.
• Take Note of What Your Job Has to Offer
In 2022, get to know the perks provided by your work. There may be resources available that you aren’t aware of, such as financial planning sessions, wellness initiatives, and gym reimbursements. Spending a few minutes on your HR site or contacting your benefits manager directly might bring unexpected results and extras.
• Cut Down Those Annoying Expenses
Another way to save money and make sure you’re spending on the things that matter to you is to prioritize your costs. To do this, make a note of all of your non-essential spending over the last three months. Then prioritize them and try to eliminate or reduce expenditure on the ones that aren’t as critical or required like the Netflix subscription you use once a month. Consider how much money you’d save if you put that money toward one of your objectives instead of those costs.
• Make every dollar count!
Take a look at where your money has gone in the last 12 months or so. Are you satisfied with the way you’re spending money and where you’re spending it?
If this isn’t the case, make some modifications in 2022. This may include doing more buying at small companies in your neighbourhood and avoiding large stores like Amazon, or maybe you are looking into a more sustainable environment. Obviously, your personal spending isn’t going to change the way the world works, but do not forget that your money represents your influence in many ways. Make sure you make every cent count this coming year.
• Invest in you.
Use part of your money this year to invest in yourself in a way you’ve always wanted to but couldn’t justify previously, if you’re able to. Perhaps it’s through enrolling in a class for an entirely new career or pastime, or by finally deciding to relocate to your perfect location.
Make a commitment to invest in yourself in 2022, whatever that means to you. You’ve earned it.