13 Dec 5 Money Tips to end 2021 on a Financial High Note
Maybe you set financial goals for 2021 that you’re short of achieving. Don’t fret; here are 5 last minute money tips that will end your year on a financial high note and an invite to start your new year on the right financial footing.
1. Gain control of your weekly spending. It really does not matter how much money you make if you are not intentional with how you spend it. Creating and sticking to a spending plan that aligns with your goals and values is the best way to achieve financial wellness.
2. Give your money a job. When you control the flow of your money, then your money starts to work for you. Open separate bank accounts for each of your money goals in 2022. Then automate regular monthly contributions from your income into each specific account. Ie. Traveling in 2022? Open a travel account and set up regular monthly payments to go directly into your travel fund. Voila pre-paid, stress-free vacation!
3. Create a plan for eradicating debt. If you are carrying debt into 2022, especially a credit card balance, then you need to start a debt elimination plan that works with your financial behaviours. I am a big fan of the debt snowball method and have used it myself and with clients to eradicate hundreds of thousands of dollars of debt.
4. Test the strength of your financial safety net. The past two years have taught us the importance of planning for the unexpected. How has your financial emergency plan held up? Do you know how many months you could pay your expenses with your current savings or insurance? If you do not know the answer to this question, it is a good time to find out.
5. Take advantage of free Money! Opt into your employer’s matching group retirement or savings programs. Put money into government savings vehicles that reduce your taxes, grow tax-free or match your savings.
If you are receiving this letter, it is because you took a step towards better financial wellness. I want to congratulation you on learning about the mechanics and emotions of your money. If you want to continue your journey to financial wellness in 2022, join the 2022 ReBoot your Money challenge here.
Yours in Good Financial Health,