As we reach the end of the year, it’s the perfect time to reset your finances and goals for 2022. Your financial fitness is key to a healthy new year, so take this opportunity to set financial resolutions you know you’ll stick to. Let’s talk about ways you can make 2022 your best year yet.
Setting and sticking to a budget is one of the more difficult aspects of becoming financially secure, but it’s not impossible. Start by organizing a list of essential spending categories – food, shelter, clothing, etc., and write down how much you spend monthly for each. From there, add up your monthly income and deduct your expenses. The amount you have leftover is what you have left for paying off debt, savings, entertainment, etc. By doing this, you’ll be able to create a realistic budget for yourself.
Making a plan to tackle debt is an important step towards a healthy financial future. Debt consolidation is a great financial strategy for tackling debt. It’s a way to combine multiple debts, whether they are credit card bills or loan payments, into one single payment. This means you’ll have one interest rate and one payment to focus on, which can help you pay off your debt faster.
An emergency fund gives you peace of mind that you’re ready to face unexpected challenges that could arise, like income changes, medical bills or car repairs. If you don’t already have one, start the new year off by opening an account where you can set aside some money. Consider opening a savings account or certificate account for these funds.
If you have a retirement plan through your employer, aim to increase your contributions if you can afford it. Even if you can’t max out your 401(k) or IRA, see if you can boost your contributions by 1%. It may not seem like a lot, but it adds up!
Your credit history and credit score affect many areas of your financial life, so it’s important to review your credit report regularly. You’re entitled to a free credit report every year from each of the three major credit bureaus. Make sure to check it carefully, and if you notice any errors, contact the credit bureau immediately. If you need help reading your credit report, we’d be happy to review it with you!
You don’t have to navigate your future financial plans by yourself. Lowland Credit Union is here to help! Give us a call at 423-581-8345 to make an appointment!