Five Financial Goal Ideas to Work Toward in 2022
The start of a new year is always the perfect time to create meaningful intentions that will create positive change in your life. Among some of the most popular New Year resolutions are financial goals to improve your money mindset and stability.
It’s never too late to improve your finances and set yourself up for success. Below are five financial goal ideas to work toward in 2022.
Create a budget
Every smart financial goal needs a budget to create a strong foundation. Whether you’re looking to completely revamp your finances or simply looking for ways to save money throughout the year, a budget can help you identify the gaps in your spending. A look back at your 2021 bank statements is a great start to review how you did over the last year.
If 2021 included more spending than you care to admit to, then spending less can be a great financial goal for 2022. A good place to start is by identifying where the excessive spending happened. For me, it’s usually Target or Amazon, which usually means I should probably avoid those retailers whenever possible. Where can you cut back on spending?
Start an emergency fund
Covid-19 taught us that nothing is forever. Not life, not a job, not even a home. We never know what kind of curveball life will throw our way, which is why an emergency fund is so important. In the case of an unexpected death, job loss, or illness, emergency savings can save the day.
Pay off debt
Once you’ve created an emergency fund, it’s time to start paying off your outstanding debt. Whether you choose to approach your debt with Dave Ramsey’s snowball effect or prefer to pay off your highest interest items first, paying off debt can take a huge financial weight off your shoulders, which makes it a great goal for 2022.
Save for a vacation
Financial goals don’t always have to be dull. One of my favorite ways to stay motivated and improve my relationship with money is by starting a vacation fund. Every year, my small family plans a fun vacation for my daughter’s birthday. This usually requires a few thousand dollars, which makes it a great financial goal to work toward every year.