Financial goals for 2022
Published 01/26/2022
2022 is here, and our checking account is shivering with all the Christmas spending. We console ourselves with «New year, new life» and almost implore a miracle so that this year is better economically speaking.
But then, more out of inertia than commitment, we began to write a list of resolutions for the new year: go to the gym to lose the kilos we have gained, eat healthier, finish the course that I started and never finished, and save!
We have to be honest with ourselves. If we want miraculous recipes with a bit of sacrifice and many results, our list will not be fulfilled.
However, many of the goals we set for ourselves at the beginning of the year are not sustained until the end of the year. This happens because we want more than we can achieve. That is to say, we have excellent intentions with our purposes, but at the moment of truth, the brain is lazy and is not for the work of change.
So that this year is different, at least concerning your financial and economic purposes, we share some tips so that 2022 is the year that you finally learn to manage your money.
Tips to reach your financial goals
This 2022 has started, which means an excellent opportunity to work on our goals for ourselves. Generally, people set financial goals such as paying their debts, saving, and investing. This article gives you a tip that will help you achieve them.
After the crisis due to the Covid-19 pandemic, New Year's resolutions related to personal finances are the most common for 2022.
The firm Fidelity Investments carried out a survey on the intentions of the Americans and the outlook they have for their economy for the year to come.
Of the people consulted, six out of 10 feel optimistic about the future, even if it is unknown, and 72 percent trust that they will have a better economic situation in 2022.
Make a monthly budget.
Before planning your finances, you must know what your starting point is, which is achieved by making a realistic monthly budget.
This budget will include all your income (salary, rent, extra income) and all your expenses. At this point, you should not only include the mortgage or rent, but also the expenses of the weekend, the coffee you have with your friends, the hobby you have, and much more. Once you have the income and expenses, subtract them, which will be your savings capacity.
I recommend that you apply the 60-30-10 rule, that is, that 60% of income goes to fixed expenses (mortgage/rent, electricity, water, internet), at most 30% to variable expenses (go out with friends, buy clothes, your hobby, etc.). At least 10% goes to savings.
Take a moment each end of the month to review your finances.
Analyze how you managed your budget, what expenses were out of it, or if you received any bonus or extra income, and identify what actions you should control so that everything goes as planned at the beginning of the year.
Your withdrawal is important
Finding out what you must do now to have a decent old age is a mandatory task. Fundamentally, you think about your future. If you do this, you will avoid financial complications when you get older.
Be a cautious person and create an emergency fund.
Unforeseen expenses are always a headache. Try not to use credits, so you should get ready for unexpected situations by having an emergency fund. If you want to know more about this, we invite you to read our article What is an emergency fund?
Reduce your debts.
You must bear in mind that you will have to pay someday the money that your parents lent you or the deferred payment for 12 months on your credit card. With correct planning of your expenses and discipline, you will avoid all your fortnight going into debt and thus begin saving.
Increase savings
A healthy purpose is to save at least 10% of our monthly income and see it as a forecast, as this will allow us to have financial solvency in case of emergencies or unexpected layoffs. Do not spend all the money you earn. Instead, try to save all that you can. In this way, you can invest in various products that generate interest.
You may also be interested in reading our article Common mistakes when saving
Reduce expenses
It is necessary to make responsible purchases and that we do not want to spend our money on unnecessary things; It is also essential to ensure that we are not spending more than what is earned or what can be paid at the end of the month. The ant expenses are all that we do every day without realizing it, but little by little are affecting our economy, like the coffee on the corner, the food at home, or the cigarette. Start by identifying and reducing these types of expenses.
You may also be interested in reading our article Tips to use your credit cards wisely
Choose savings tools according to your goals.
There are many financial products with exciting features, but you have to choose those that fit your goals. In other words, you don't contract a mortgage because you want a mortgage. You acquire it because it is the tool that allows you to have a house. In this way, if your objective is short-term, you should seek to obtain some profitability but with the total availability of your money. If your goal is long-term, some tools maximize profitability without as much liquidity.
If we are talking about medium-term objectives, it would be necessary to assess whether they are closer to the short or long term to choose the appropriate financial solution.
Expand your financial education.
There are many blogs, YouTube videos, social media accounts, podcasts, and books to learn about investing and personal finance. With these tools, you will understand terms that allow you to expand this knowledge that nobody taught us in school. Look them up and take a few minutes a day to learn a new concept or better control your financial habits.
Suppose you put these simple tips into practice and maintain discipline and optimism. In that case, we are sure that you will improve your financial situation in 2022 and other essential aspects of your life.
New purposes, new goals, and a new beginning that is what many people yearn for and look for a new year to represent. This 2021 is no exception and offers the opportunity to reorganize our finances in addition to projecting personal goals.
At El Paisa Multiservices we want to help you with your finances and give you the best advice. You can contact us if you have questions about our services.
By Ingenuity & Solutions
