Successful Financial Planning for 2022: 4 Key Steps to Kick Off This Year the Right Way

Successful Financial Planning for 2022: 4 Key Steps to Kick Off This Year the Right Way

Successful Financial Planning for 2022: 4 Key Steps to Kick Off This Year the Right Way

As you get ready for the new year, you may be thinking about saving money and getting a handle on your debts, or perhaps you are looking at ways to reduce your tax burden. Maybe you have set financial goals for yourself this year, or you’re simply looking for advice on how to make your money work for you. Either way, there are plenty of resources that can help you make good decisions regarding money. So, what are some tips to give you the best chance of meeting your 2022 financial goals? Here are four key ones we’ve found.

1. Consolidate your debt now before interest rates rise

The Federal Reserve has announced a plan to increase its interest rates sometime in 2022 and lenders will follow suit soon after. If you’re currently in debt and working on getting out from under it, consider researching which are the best personal loans for your financial situation and consolidate your debt to lock in a lower interest rate now.

2. Prioritize your retirement savings

Putting money towards your retirement benefits your financial situation in many ways. Not only will you have money stowed away for the years when you’re no longer in the workforce, but the sooner you start saving, the more you’ll be able to maximize the power of compound interest. Also, most retirement savings accounts have tax advantages that can save you money come tax time. Check with your employer to see if they have a retirement contribution match program and set up a regular deposit that matches at least the maximum percentage they’ll contribute every paycheck.

3. Reevaluate your tax withholdings

If you get a large tax refund every year, then it’s time to re-evaluate your withholding status. While it’s great to see that large deposit in your account from the IRS, it’s even better to use that money throughout the year in a way that improves your financial situation, like to pay off debt, save for retirement, or even just put it away for a rainy day. Paying too much in tax is like giving the IRS an interest-free loan on the money you earn. Instead, adjust your withholdings and use that money when you need it most.

4. Change your spending habits for the better

New year’s resolutions don’t need to be big changes to create a difference, especially when those resolutions are tied to your finances. January is a perfect time to re-evaluate how you use money and make small changes that can create maximum impact on your financial health. If you’re guilty of impulse spending and are in debt because of it, make January the month you take steps that make it more difficult to overspend by removing stored payment methods on e-commerce sites. If you can’t help opening and clicking links to buy in those sale emails your favourite store sends you, unsubscribe and clean up your inbox.

The bottom line

The new year is a perfect time to plan your financial life and make small changes. Taking time to plan out all aspects of your finances for the year ahead will help set you on the path to success. When you’re ready to get serious about your financial health, use this guide to help get started, and you will be able to reach your financial goals quickly. Successful Financial Planning for 2022: 4 Key Steps to Kick Off This Year the Right Way

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Successful Financial Planning for 2022: 4 Key Steps to Kick Off This Year the Right Way

Successful Financial Planning for 2022: 4 Key Steps to Kick Off This Year the Right Way

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