3 Ways I'm Getting Financially Prepared for 2022
Planning your financial goals at the end of the year can help you reach those goals in the new year.
- I'm taking steps to outline my financial goals and plans before the new year begins.
- Planning ahead financially can help make your next year even better.
We're only a few weeks away from the new year. For me, that means it's time to begin preparing for the upcoming year. I like to outline my financial goals and make new plans. I can make the new year less stressful and set myself up for greater success by planning now. If you want to be financially organized before Jan. 1, you may want to start thinking ahead, too. Here are three ways I'm getting financially prepared for 2022.
1. Setting income goals for my freelance business
As a freelance worker, not all years look the same for me and my business. My life situation may change from year to year. Each year, I learn and grow, which means my business evolves, too. Many workers in regular jobs have a maximum income they can make if they ask for a raise, since their boss may say they can't afford to pay more.
As a freelance worker, I can control my income and have greater flexibility in making my income goals happen. Now is the time when I set my income goals for the upcoming year. I can choose to set higher or lower goals or readjust my work strategy for a routine that makes the most sense for my needs right now.
2. Increasing my savings
I'm a big fan of automating savings. Once I set up automatic savings withdrawals, I don't have to think about it, and I don't forget to save. Setting up automatic savings ensures I have extra funds for future purchases, emergencies, and self-employment taxes. This year's automated savings plan worked out well, but I want to save even more in the new year.
Here is how I plan to increase my savings: Since I already have a separate savings account and have my savings plan set up, I'll change the preset withdrawal amounts before Jan. 1. Doing this will put me in a better financial situation because I'll have extra money when an unexpected expense comes my way.
3. Reviewing this year's spending and revising my budget for the new year
I also plan to take a careful look at my past spending. There are likely some purchases that I made or expenses that I've continued to pay for that can be eliminated next year. Before I can rework my budget and decide how much I will spend each month, I need to review the past year's spending to see what changes I need to make.
When you don't take the time to review your spending regularly, it can be easy to overspend on unnecessary purchases. For some, this also leads to additional credit card debt. You can avoid this by reviewing your checking account and credit card statements often.
Once I know what spending I want to cut down, I can revise my budget for the upcoming year. In addition to minimizing unnecessary purchases, I take into account how some of my needs have changed in the last few months. Altering my spending habits could be beneficial for my financial goals.
If you want to create a budget but don't know how to begin, this guide will teach you how to budget. Following a budget is even easier with today's technology. You can use budgeting apps to keep track of your spending and stay on target with your saving.
If you want to make financial changes to improve your life, you don't have to wait until the new year to take action. Now is the time to outline a plan. Don't let stress keep you from making necessary changes, and don't think you have to stay in the same financial situation forever. If you'd like more help with financial matters, these personal finance resources may be helpful.
Alert: highest cash back card we've seen now has 0% intro APR until 2024
If you're using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.