Money / Financial Planning
If your goal is to improve your financial situation in 2022, the best way to achieve this is to have some clear-cut, actionable resolutions in place. Whether you’re looking to get out of debt, buy a house, save more for retirement, take your family on a vacation or reach some other money goal, these expert-approved money resolutions will help you get there.
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Stick to a Budget
“Rather than focusing on a certain dollar amount (i.e. save $x or pay down debt by $x), you may want to consider ‘living on a budget’ to be your goal for 2022,” said Jay Zigmont, PhD, CFP, founder of Live, Learn, Plan in Mississippi. “This means a commitment to setting a budget at the start of each month and weekly budget meetings to check in on progress.”
You may need to try out different budgeting techniques to find one you can stick to.
“There are lots of budgeting tools and methods, and they all work in some way, but the best one is the one that works for you,” Zigmont said. “Your commitment should be that you live on a ‘zero-based’ budget, which means that every dollar has a purpose and job before the month starts. Keep in mind that your budgets won’t be ‘right’ at first, but it is more about getting in the habit of having a budget and checking on it regularly.”
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Build Up an Emergency Fund
“If you have extra cash after reviewing your budget, make sure that you have an emergency fund,” said Kerry Kiehn, chief operations officer at Earth Equity Advisors. “A good general rule is to keep at least three to six months’ worth of living expenses, but it varies by person. The main reason for an emergency fund is to have enough on hand to continue to buy food and pay for your mortgage or rent if your income were to drop or an unexpected bill arises.”
If your budget doesn’t currently allow for you to save, look for expenses you can cut out or ways to bring in some extra income so that you can build up your emergency fund.
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Make a Plan To Tackle Your Debt
“You can start alleviating debt stress by setting small goals and working …….