Profiting from Your Financial Goals in 2022
During the first year of the pandemic, maybe you put off thinking too hard about the future because the present was stressful enough. As we approach the end of 2021 perhaps you are more open to looking to the future and establishing some shiny, new - or trusty, old - financial goals and habits. Here's a few you might profit from in 2022.
Rethinking prioritiesDid the pandemic changed your view on what's important in life going forward? For example, a house with a backyard is now a must. To make this goal a reality sooner, consider redirecting into a brokerage account the 401(k) contributions you are making above your employer's match. You can access those dollars for a down payment.
If not a house purchase, what other financial goal might be your priority? Set aside a distraction-free evening to explore and identify it. If you've previously written out goals, review them. What made you feel most anxious, most happy, or most relieved? What kept you up at night? These questions will help address where you should focus to start moving forward.
If you were lucky to remain employed throughout the pandemic turmoil, many days thinking about the amount of money in an emergency fund (or rather, the amount not in an emergency fund) may have caused anxiety.
In order to save more, enjoy the pandemic scale back, like the number of social engagements, or perhaps your efforts to cook at home instead of eating out. And be ruthless when it comes to subscriptions you don't need. Another cash in hand trick is to list unwanted or unnecessary clothing items on sites like Poshmark or Vinted to maybe earn back a few bucks.
Here's another simple activity that can help you start saving a little more: Go through your bank statements for all of 2021, and from most important to least important, rank the purchases you routinely make that aren't essential, like a gym membership or that streaming service subscription. Cut out the expenses that rank at the bottom. If you want to stash away more cash then you need to make bigger sacrifices or find a way to supplement your income.
Recommit to sustainabilityWhile this might not seem like a financial goal, and perhaps you did a head tilt, doing what's good for the environment is ultimately good for our personal finances. Limiting our environmental footprint saves dollars in the long run.
What you can do: Recycle, reuse, and make decisions about your personal habits and housing that are overall financially sound for everyone. For example, change your lightbulbs to LEDs, be mindful of food waste and eat healthy, which lowers health-care costs. Conserve water and go paperless or use only eco-friendly paper. And can you continue to work remotely to reduce your carbon footprint?
What will 2022 bring? The answer is somewhat uncertain, but the financial goals and habits we establish are ours to control. Let your Private CFO help you make the most of your 2022 by reviewing, or establishing, your financial plan today!