8 Financial Tips for Your New Year’s Resolution

Six out of ten American’s will make some type of financial-based New Year’s resolution for 2022.  Usually, there is a triggering event like receiving your December 2021 credit card bill or spousal pressure to name two.  Follow these tips for improved financials in 2022:

1. Consolidate Financial accounts: Consider closing 1 or 2 existing financial accounts that you are not tracking or have insignificant monies in.  This will save brain space, reduce statement clutter, and avoid paying unnecessary fees.
2. Increase your 401k/employer retirement contributions:

Raise your contributions a minimum of 1% per year.  You won’t feel the difference; however, over time it can make a major impact when entering retirement.

• Develop a budget and or expense statement: Review credit cards, bank, and checkbook statements to get a handle on your inflow and outflow of money.  Start using a program like Quick Books or if old school, draft a budget by hand and hang it up where you can see it.
• Set up a systematic money saving program:  Set up something informal like putting the $20 you are saving in gas on fill-ups in a jar.  Formal ideas are even better, such as buying a cash value life insurance policy, tax deferred annuity, mutual fund or setting up an Eft thru your bank account.
• Protecting your HEALTH saves your WEALTH: We all know about the escalating cost of health insurance and health care in general.  Renew that gym membership, yoga studio membership, buy a Peloton, or dust off that treadmill in the garage.
• Use All of Your Flexible Spending Account Money: If you have set aside pre-tax wages to go into a flexible spending account, (FSA) you have until December 31^st to spend down the qualified expenses.  These expenses can include deductibles and expenditures that your health, vision or dental plans do not cover.  Double check if your employer allows you to “rollover” unused FSA money to 2022.
• See If the Doctor Is In: If you have already reached your 2021 deductible on your health insurance policy, consider sneaking in that last doctor’s visit or procedure you have had on your to do list for 2022 before year end.
• Bring balance to your life: Consider taking that vacation in January or February that you have been putting off.  The rest and rejuvenation will positively impact your health.  Statistics show that those who work 46-48 weeks per year will out produce the 52 week per year worker.

My vacation experience gives me something to look forward to.  It is easier for me to work longer hours during year-end knowing I will be going away shortly.  Vacations force me to be super productive before leaving and again when catching up after returning home. 

You will be amazed about how much better you will feel by following these 8 easy steps!  Wishing you and your family a Happy, Healthy and Prosperous 2022!