Give Yourself a 2022 Financial Makeover

Making resolutions is a popular thing to do this time of year. Keeping them is another. One study found 77% of people kept their resolutions for a week, but only 19% kept them for two years. A recent survey listed the top three resolutions as being about fitness and exercise, healthier eating, and losing weight. Those are important, but so is your financial health, which feeds into your physical health. According to a MetLife Employee Benefit Trends study, people who are less worried about their personal finances are more productive. Here’s how to start off strong in 2022.

• Look at the year - What does 2022 look like for you? Do you have any major expenses coming up? Will you need to buy a new car this year? Are you sending a child to college? Identifying big changes that lie ahead can help you set your priorities accordingly.
• Separate necessary expenses from optional ones - Take an honest look at where your money is going to see if you can find places to save. Do you really need that takeout as opposed to making dinner at home? Do you watch all available streaming services, or can you cut the list down to those you use most? Finding ways to save enables you to put away money more easily in a rainy-day account or retirement plan.
• Set a budget - Create a plan for how you will be using your money this year. Don’t just make it in January and then never look at it again. Plan to revisit it once a month or once a quarter to see if you are sticking to it or if it needs to be altered to reflect current conditions.
• Identify achievable tasks - Looking at giant goals such as saving for retirement or resolving outstanding debts can be intimidating. Break them down into smaller more manageable milestones, like saving $1,000 for an emergency fund, paying off the smallest of your debts, or contributing a slightly higher percentage to your 401K. When you cross those items off your list, you feel a lift that encourages you to keep going.

Making financial wellness a priority will make you more productive and less stressed, which helps both your mental and physical health. Now that’s a win-win!