New Year Planning - Starting Anew in 2022
Okay, the title is a little cheesy, but someone comes up with something just as cheesy every year. Every new year comes with resolutions, promises to improve our way of life, whether health, relationships, or finances. We start with new mindsets to be better stewards of our money. We reflect on what we spent the prior year and vow to do better in the new year. Thus, New Year Planning - Starting Anew in 2022.
Budgets
Creating a budget is one of the first steps to taking control of your finances, but it can feel overwhelming sometimes. The budget you create today could change drastically over time, depending on your needs. Revisit your budget regularly to track your spending. That “miscellaneous” category could be taking up more of your income than you realize.
Estate Planning
Estate planning is another item that we say we’re going to do but is placed on the back burner. No one likes to think about making these plans because no one wants to think about death. However, taking care of your affairs now will alleviate a lot of headaches for your loved ones later. Start now by making sure you update your beneficiaries on all your accounts (insurance, checking, savings, retirement, pension, etc.). Prepare a will and a living will so your loved ones know exactly what you want. I have relatives who even prepaid for funeral arrangements so the family wouldn’t have to during their time of grief.
Savings
Make saving a priority. With prices of goods and services increasing daily, it can be challenging to save money. One way to save is taking your change and putting it in some type of piggy bank. That’s a term that hasn’t been used in a while. If you don’t have a piggy bank, you can use any container that can hold coins and bills. There’s nothing heavier than a pocket or purse full of heavy change. Drop those coins in a cup or bag, and you’d be surprised how much you can accumulate.
So, here are some takeaways for 2022: