How to be financially fit for the New Year
If you’re looking for New Year’s resolutions to keep, try becoming financially fit in 2022!
It’s a new year, meaning a new you. Focusing on your finances in the new year can offer freedom and stability. Though New Year’s resolutions can be challenging and scary, think about the opportunity for growth and accomplishment in 2022.
Wherever your financial journey leads you, here are some tips for getting financially fit in the new year:
Get educated
Research financial literacy blogs, personal finance books or podcasts to learn about money and budgeting. See if any local educational institutions offer in-person or online classes.
Talk to your partner
Have the money talk with your spouse or partner to get on the same financial page. Remember to talk openly and honestly without being judgmental. Come up with a financial plan that you can reach together.
Understand your financial situation by listing all your sources of income and expenses such as rent or mortgage, monthly bills, and other living expenses. Track where your money is going.
Pay bills on time
If you are unable to take an aggressive approach to getting out of debt, make sure you’re at least making the minimum payment.
Declutter your home
Clean your home and get rid of any clutter, keeping your house clean and organized. It could help you be more aware of your spending habits. You could save yourself a shopping trip by showing you what you already have or need to remove.
Cancel unused subscriptions
Cut back on your expenses by getting rid of subscriptions you no longer use such as magazines or streaming services. It could make it easier to trim the extra costs and stick to your budget.
Review any short and long-term plans
Review your long-term and short-term goals and costs. For instance, if you are aiming to buy your first home, how much will you need for the down payment? A new year also means one step closer to retirement, so make sure you’re financially ready. If you don’t have a retirement account, consider opening an employer-sponsored account such as a 401(k). If you don’t, consider options like an IRA.
Create a budget
Assigning your money to specific goals such as savings or vacation will make it easier to be mindful of spending and cutting down on extra expenses. If you have a budget in place, review it for overspending, underspending, and any unexpected expenses. Be sure to review for any income miscalculations from any raises to supplementary income from a second job. You can always adjust your budget plan for 2022.
Start saving
Once you start saving, you’ll be motivated to add more to watch it grow.
The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.
