Another part of starting the year is looking at your finances. Have you already done that? If not, spend some time doing so.
I am still in the process of taking stock of my 2021 financials (a bit late with it all this year) but I already know that I would be terminating my subscription for these! It will result in a slight reduction in my outgoings.
I never read them! I’m juggling too many balls at the moment, so it’s been impossible to fit in reading them! I’ve found that listening to books and podcasts are easier for me now.
Below are some things to consider when setting your 2022 financial goals.
- What did you spend your money on in 2021?
- Were you surprised by your spend in any of the categories?
- Are there any categories you could cut down on?
- Is your debt fully paid/significantly reduced compared to the start of 2021?
- What percentage of your income went to savings/investment?
- Did you find any subscriptions you aren’t utilising that can be cancelled?
- Did you find any other categories where cost can be reduced?
- Is your emergency pot full, depleted and needs refilling or perhaps do you need to reassess the amount you should hold in your emergency pot?
- Did your investments yield what you expected and are you investing in the right places?
- Are there other investment opportunities you should be taking?
- What percentage of your income will you put towards paying down debt in 2022? Are there other investment opportunities you should be taking?
- Is there a chance to increase the percentage that goes towards your saving pot, by reducing subscriptions not being used or cutting cost in some places?
- Do you have any fund things planned for 2022 and if so, how much would you need to save towards this?
The general principle of pay your debts off/down is particularly important now that the government have begun to raise the interest rates, so concentrate on that before you start investing or saving.
Remember, build in financial goals for fun things (e.g. holidays, theatre, etc) as that’s what will keep you on track when the journey gets tough!
Also remember, if you are lucky to have your income go up during the year, don’t let your expenditure go up in the same proportion as your income, rather save as much of the increase as you possibly can (or put it towards paying down debt, after which it can then be diverted into your savings/investments).
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📝 Originally shared under my first blog, bitalks; part of the journey that shaped Life’s Riches.