The old adage “in order to make money, you need a plan” is truer now than ever. With the economic landscape always changing and uncertainty in the air, it’s never been more important to have a clear financial strategy for success.
Setting financial goals is no easy task. Not only do you need to know exactly what you want, but you also have to be able to figure out how much it’s going to cost and how you’re going to achieve it. But don’t worry, we’ve got you covered.
In this article, we’ll discuss the top 20 financial goals everyone should have for 2022 and we’ll also provide you with tips on how to achieve them.
The following 20 steps will help get you started:
Just remember that I am NOT a financial advisor and you should ALWAYS consult with a professional before making any financial decisions.
1. Establish long-term goals for 2022
It’s easy to get caught up in the day-to-day grind of life and lose sight of your long-term financial goals.
You might be wondering what you’re working toward when it feels like it’s just one paycheck after another.
Once you have that vision, break down each goal into smaller steps so they feel more manageable and less overwhelming.
2. Determine what’s important to you and what’s not
Money is a big part of our lives, but we often don’t spend it in ways that make us happy.
We can easily get caught up in what other people think about how we should be spending our money instead of focusing on what matters most to us personally.
We all want to live a comfortable life and have the freedom to do things that are important to us, but sometimes we lose sight of this goal when it comes time for budgeting or saving.
Consider taking some time at the start of each month (or year) to sit down with your family and figure out where your money should go.
You’ll waste less money on things you don’t need and enjoy yourself more because you know you’ve made good choices with your hard-earned cash!
3. Create a realistic budget and track your expenses
It’s hard to save money. You have so many expenses and it’s easy to get caught up in the moment when you’re spending your money, especially if it’s not going toward a long-term goal.
We all know that saving for retirement is important, but how do we actually do that? How much should we be saving each month? What are some different strategies for getting started?
The best way to start is by understanding where your income comes from and then determining what percentage of income should go toward recurring expenses like rent or groceries.
Then consider what other expenses might come up in the near future – such as medical bills or car repairs – and build in a little wiggle room so you don’t go over budget.
Once you’ve done this, use an app like Acorns to automatically round up every purchase on your credit card so those small amounts can add up over time into something bigger.
4. Pay off high-interest credit card debt
Most people carry credit card debt into retirement, and some even take out loans to pay off their cards.
Credit card interest rates are high – they average around 15%, but can be as high as 30% or more.
This is a huge problem because the longer you have your balance, the higher your interest rate will climb.
If you don’t do something about it now, in just a few years your credit card interest rate could become unaffordable!
You need to make paying off your debt a priority if you want to escape this trap before it’s too late.
It may mean cutting back on spending or putting all of the extra income toward the credit card balance with the highest interest rate.
But doing so will help you dig yourself out of this hole faster than anything else!
5. Invest in yourself by taking courses and learning new skills
It’s hard to find a job in today’s market because it is so competitive.
The best way to stand out from the crowd and get noticed by recruiters is to increase your skillset, which will make you more valuable as an employee.
One of the most common ways people do this is by going back to school or getting an advanced degree.
6. Automate your finances by setting up auto-pay and bill reminders
Managing your finances is hard and can be stressful, especially if you’re not sure whether all of your bills are getting paid on time.
The best way to make sure that everything gets paid on time is by setting up auto-pay for each bill.
This will ensure that nothing falls through the cracks and you don’t have to worry about late fees or other unexpected expenses.
Create a file with every bill you need to pay, including utilities, car payments, credit cards, and more!
Then set up auto-pay for each one of these accounts so they get automatically taken care of without any effort from yourself.
Check-in once a month to confirm that everything has been paid – it’s easy!
7. Open a savings account and set up automatic deposits
Carrying cash in your wallet can be risky, and having a lot of money just sitting in your checking account means that you’re missing out on potential interest.
Having an emergency fund is important for any household, but it’s even more crucial if you don’t have access to credit or other forms of financing.
Open a savings account and put all of the extra income that you have toward building up this money for emergencies or future goals.
You will feel so much more secure knowing that you have a savings account to fall back on if something unexpected comes up.
In addition, many banks offer high-yield savings accounts that will give you a better return on your money than if you just left it in a checking account.
8. Keep your car in good condition to avoid costly repairs
The average car owner spends over $1,000 a year on car repairs, and this number is only going to go up as cars become more and more complex.
One way to avoid these costs is by taking care of your car – make sure you’re regularly changing the oil and getting the maintenance done that’s recommended.
In addition, keep an eye on the wear and tear on your car and replace any parts that are starting to show signs of age.
This may seem like a lot of work, but it’s definitely worth it in the long run!
9. Buy term life insurance
Life insurance is important, but it’s not something that a lot of people think about until they are in their 40s or 50s.
Many young professionals don’t realize how much life insurance can be useful to them.
The older you get, the more you need coverage like this because there is so much life left ahead of you and your family needs to be protected if anything happens to you.
Term life insurance is the best option for younger people since it’s affordable and provides enough protection at an affordable price point.
It also allows young families to plan for unexpected expenses without having to worry about paying out a large sum upfront.
10. Use financial tools to keep you accountable
While some people choose to keep track of their progress by writing down their goals and the steps they will take each day to reach these goals, others find that this method is too difficult or time-consuming.
Thankfully there are plenty of apps available for your phone or computer that can help you stay on top of your personal finances and monitor your progress without having to write anything down.
These tools allow you to connect all your accounts. You can see everything that happens. You can set up notifications for when you are doing something, like paying bills or buying large things.
This allows you not only to know where all of your money is going but also how much you have leftover after expenses at any given moment in time.
11. Have a Well-Stocked Emergency Fund
Not having an emergency fund is one of the biggest mistakes that people make.
Not having enough money for emergencies can cause you to go into debt, or worse yet, not be able to cover your basic needs like food and shelter.
Having a cash buffer in your savings account will help you avoid getting into trouble when something unexpected happens.
It’s easy to get started – all you have to do is set up automatic deposits from your checking account every month so that it goes right into a separate savings account.
This way, you’ll never even see the money and won’t miss it until there’s an emergency!
12. End any addictions that you may have
Not having enough money to retire is a real concern for most people.
But there are some simple steps you can take right now that will help improve your finances and position yourself for a comfortable retirement.
First, look at your spending habits and make sure you’re not wasting money on things that aren’t important to you or that don’t align with your values. You might be surprised how much small expenses add up over time!
Next, start saving more of what you earn so that it’s easier to live off of the interest than trying to get by on the principal alone.
Finally, diversify your investments so they protect against market fluctuations while still giving you solid returns over time.
That way if one investment falters, others will pick up the slack until it recovers again later down the road.
These three tips are just as easy as they sound but could have a huge impact on where your life takes you in years to come.
13. Plan for early retirement
The only thing worse than not planning for retirement is trying to catch up on your savings late in life. Retirement savings needs to be an important part of your financial plan.
If you want to retire comfortably, then you’re going to need a lot of money saved up. You can’t expect Social Security or an inheritance from family members to help out with that.
Start saving early and make sure you stick with it so that by the time you’re ready for retirement, your savings will be enough.
There are plenty of ways to save more each month, like cutting back on unnecessary expenses (like cable) and getting another job if possible.
Saving even small amounts over a long period of time has been proven effective at building wealth over time when done consistently and correctly.
14. Create multiple income streams
We all know that having multiple income streams is a good idea, but it can be hard to actually do.
Most people are too busy with their day jobs and don’t have the time or resources to start a second job. Or they think that starting another business would take too much of their time and energy away from what they already have going on in their lives.
The truth is that you don’t need to quit your day job or spend hours each week working at home after work just so you can make some extra money online.
There are many ways for people who have internet access to make more money. You can sell things on eBay, take surveys, and do other paid market research studies. You can also use sites like Fiverr and Upwork to sell your skills.
The point is that there are many ways to have multiple income streams, but only if you’re willing to look for them.
If you take the time and effort to find a few different sources of income, you’ll be much better off in the long run. And you won’t have to worry so much about not having enough of it when you get older!
15. Live on less than you earn
Most people have a hard time sticking to their monthly budget because they don’t know how to prioritize.
They try and cut back on all of their expenses at once, but that’s not the most effective way to save money. It’s better if you focus on cutting back one or two things per month instead of trying to do everything at once.
A great tool for helping yourself stick with your monthly budget is using Mint Budgeting App. This app will help you figure out where your money goes each month so that you can start prioritizing more effectively and saving more money in the long run.
16. Plan to leave your financial house in order upon your death
Planning for your death is uncomfortable.
You don’t want to think about it, but you should. It’s not just a morbid thought.
It is very important to think about how the people you love will be affected by your passing. If you take care of this now, they won’t have any financial burdens after you’re gone.
The best way to make sure that everything goes smoothly when you die is by doing an estate plan with the help of an experienced lawyer. They will help you figure out what to do with your things and how to protect people you care about.
17. Figure out why a particular financial goal is important to you
You don’t want to be like so many people who get caught up in the lifestyle of having an expensive car, designer clothes, and the newest technology without really thinking about why any of it is important.
The problem with this mindset is that you can easily lose sight of what’s really important. Working hard for a few years just to have more stuff isn’t as satisfying as working hard because you know you’re making your life better.
When you start setting financial goals, make sure they align with your values and priorities in life. If they don’t line up, then forget about them!
It’s not worth living a materialistic existence if it means losing sight of what truly matters most to us all – our loved ones and friends.
And remember that money can bring happiness when we use it wisely – but only when we are using it for something meaningful!
18. Eliminate student loan debt
Student loan debt is a huge problem in the United States. Borrowers’ debt levels have increased to the point that there are now more than 44 million people owing over $1.5 trillion in total.
This is a huge burden for graduates, and it’s preventing them from buying homes, starting businesses, and saving for retirement.
The best way to eliminate student loan debt is by paying more than the minimum each month. You should also make sure you’re on the right repayment plan.
There are many different plans available, and you may be able to lower your monthly payments by switching to a new one.
Student loans can be a huge weight on your shoulders, but you can eliminate that burden by following these steps.
Also, in regards to student loans, remember that there are tax deductions available to you as the borrower. You should be sure to take advantage of these deductions every year when you file your taxes.
There are also income-based repayment plans that can lower your monthly payments if you’re struggling to make them. You should explore all of your options before deciding on a repayment plan.
19. Keep track of your credit score
If you’re looking to get a loan, or if you want to buy a house, your credit score is going to be one of the most important numbers in your life.
A high credit score means that lenders will trust you more and give you better interest rates on loans. But it’s not always easy for people with limited credit histories to build up their scores from scratch.
Credit Karma is an online service that allows its users to access their free annual credit reports and monitor changes in their scores over time through its free service.
The tool also allows users to dispute any errors they find on their report directly with the three major agencies (Experian, Equifax, TransUnion).
This can help improve your score by getting incorrect information removed from your report!
20. Learn all you can about personal finance
Personal finance is a tricky subject to understand.
The good news is that there are a ton of free online courses available that can help you learn everything from the basics to advanced financial planning strategies.
You can find these courses on websites like Coursera, edX, and Udemy. And if you’re looking for a more structured learning experience, you can find certificate programs and even MBA degrees in personal finance.
When it comes to your finances, the more you know, the better off you’ll be. So make sure you take the time to learn all you can!
How can I achieve my financial goals?
The goal of today’s post was to help give an answer to this very question. If you manage to stick to these goals, they will improve your life in 2022.
However, let’s take a closer look at setting long-term, mid-term, and short-term financial goals.
Long-term financial goals
Your long-term goals can be anything from saving for retirement to buying a new home. The key is to make sure they’re realistic and achievable.
You don’t want to set a goal that you know you won’t be able to reach, because that will just frustrate you in the end.
Mid-term financial goals
Your mid-term goals could include something like consolidating your debt or saving up for a new car.
They should be something that you can achieve in a year or two, and they should help you move closer to your long-term goals.
Short-term financial goals
Your short-term goals should be the exact opposite of your mid-term goals. While it’s important to save up for larger purchases, you also need to plan how you will pay for them.
So take into account that you might have to set aside money every month in order to reach your goal. This is just another reason why you shouldn’t feel bad about making sacrifices since it’s for a better future.
Develop a goal chart.
Putting your goals into writing is a great way to start taking action on them.
But it can also be helpful to create a visual representation of your goals, like a goal chart. This will allow you to track your progress and see how far you’ve come.
A goal chart can be as simple or as detailed as you want it to be. All you need is a sheet of paper and something to write with.
Start by writing your long-term, mid-term, and short-term goals at the top of the page. Underneath each goal, list out the steps that you need to take in order to achieve it.
This could include setting a budget, starting a savings account, or making a payment plan.
Having financial goals is an excellent way to take control of your life and make the most out of it.
To help you get started, we’ve provided a list of 20 common financial goals that everyone should have for 2022. It is my hope that this article helps direct you on your path to financial freedom.
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Thanks for reading.
Until next time.