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 priorities
Did 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.
Saving more
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 sustainability
While 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!
If you would like to receive more information on making smart money moves for your future, be sure to contact us today!
