Making Money Resolutions: Financial Planning for the Year Ahead
It is now 2022 and you are flooded with blog articles, Facebook posts, Instagram captions, and Tiktoks highlighting how others are tackling the new year along with resolutions they plan on implementing.
Every January, millions of people make resolutions to get their money matters in order. Whether you're trying to get out of debt or save for retirement, there are plenty of things you can do to improve your financial situation.
Over the past few years, I have pieced together 4 important tips that will help you set your money resolutions with as little stress as possible.
Review your Current Financial Standing
The first step is to take a look at your current financial situation. What debts do you have? How much money do you have saved up? What are your monthly expenses? This may be difficult, but it's important to get an accurate picture of where you currently stand.
Review Spending Habits from Previous Year
The next step is to review your spending habits from the previous year. This can be done by reviewing your bank statements or simply looking back at receipts. What were some of your biggest expenses? Where did you spend the most money? Understanding where you spent your money will help you identify areas where you can make changes in order to reach your financial goals.
Write Down Financial Goals for the Year
Once you know where you are starting from, it's time to set some goals. What do you want your bank account to look like by the end of the year? How much debt do you want paid off? Are there any areas in which you would like to save more money? It can be helpful to break these goals down into monthly or even weekly targets so that they feel more achievable.
Create a Budget That Fits Your Goals
Now that you have your goals set, it's time to create a budget that will help you reach them. This may require some sacrifices on your part, but remember that nothing worth having comes easy! Look for ways to trim unnecessary expenses and put as much money as possible towards your financial goals.
So there you have it! Four simple steps to set your money resolutions and achieve success this year. Whether you're trying to get out of debt or save for retirement, these tips will help you stay on track. Good luck and happy New Year! :-)