We’ve received an outpouring of responses on your top financial goals for 2022. To everyone that responded: THANK YOU! Your feedback helps us curate interesting and relevant content to fit your needs. And with the new year approaching, there’s no better time to take a pause, reflect, and see what can be improved for this next chapter.
So without further ado, here are your top priorities for 2022 along with tips to achieve them:
Create and stick to a budget
The 50/30/20 method is my preferred way of tracking expenses whereby 50% goes towards needs, 30% goes towards wants, and the remaining 20% goes towards savings or paying down debt. There are also apps in the marketplace like Mint, YNAB (You Need a Budget) and Personal Capital to make tracking your expenses super easy or even automated. Take an hour or so and take a look at your 2021 expenditures. In what area are you overspending? How could you adjust that going into 2022?
Build an emergency fund
Let’s face it. 2021 has been wild. To be prepared for the unexpected (and sleep better at night!) most financial institutions recommend that you have 3-6 months at minimum worth of expenses in an emergency fund. This money will tide you over in case of any emergencies that may pop up and safeguard you and your family. The best way I’ve found to do this is by making saving automatic. Out of my 20% towards savings, I’ll add another percent or 2 of each paycheck to go towards a savings account set aside for emergencies. There are even some apps that can round up every purchase for you to go towards your savings account.
Pay off debt
We’ve all had at it some point in our lives. Paying off debt quickly can save you hundreds if not thousands of dollars down the line. List out your debt in order of highest interest rate to lowest and start paying as much as you can towards that highest interest debt until it’s paid off while making minimum payments on any other debts. Then keep paying them off in that order. If you’re eligible, you can apply for a balance transfer card with 0% interest to give you some more time to pay it off without accruing interest. Also, see if you can adjust your budget. Can you bring down your expenses for a month or 2 to pay your debt down faster? Perhaps picking up some gig work can help you pay off your debt faster?
Regardless of your priorities this year, just know that the team at MoneyHippo is rooting for you. Don’t hesitate to drop your goals or challenges in the Facebook group.
P.S. We’re coming in hot tomorrow with some quick-fire tips on how to save money to hit these #goals. Have any we should share? Let us know at [email protected]