As the sun sets on another year, there’s no time like the present to reflect on this past year, learn from our mistakes, and chart a productive path forward towards financial independence and the freedom that comes from having flexibility and options.
In fact, financial freedom is the name of the game, isn’t it? No matter who you are, what kind of financial goals you have, or how much money you make, it’s likely that financial freedom is at the very top of that wish list. The ability to sleep peacefully at night knowing that you have a plan in place and that you will be able to support your hopes, dreams, and begin to live life as you’ve always imagined? Sign us up!
As you create that list of financial goals and resolutions for 2022, add these five goals to your list to ensure your next 12 months bring you closer to a life of financial fulfillment:
Step #1: Build that emergency fund
You’ve heard us mention this concept time and time again, and for good reason! Life can get tricky and present all sorts of challenges. If 2021 was a year of ups and downs for you, then you likely know how important it is to have that emergency fund handy so that you can sleep better at night when life throws you in an inevitable curveball. Aim to save 3-6 months of your income in a high-yield savings fund that you can use if disaster should strike. Pro-tip*: automate your savings from your checking account to your savings account to make this process much easier for yourself!
Step #2: Take advantage of compound interest
While money is one of those things we always want more of, time is truly the one asset you cannot replace or “get back”. Therefore, take advantage of the time on your side and begin investing in yourself and your retirement as soon as possible. Even the smallest contribution to your retirement plan or investing account can make a big difference over time thanks to the miracle of compound interest. Give yourself every chance of growing a sizeable endowment by getting started today. After all, it is better to start small than not start at all!
Step #3: Stick to your budget
There really is no better way to understand and get a handle on your finances than by monitoring and adjusting a monthly budget. It may seem tedious to track your expenses but with the sheer prevalence of budgeting apps available, it has never been easier to get a detailed view of exactly where all those dollars of yours seem to be going. This next year, stick to your budget for at least 3-6 months. We have a feeling that in time, you’ll begin to see measurable changes to your money habits and spending behaviors as a result of tracking these expenses and making adjustments in real-time.
Step #4: Boost your income
Now, we know it is not always easy to boost your overall salary or take-home pay, BUT there are so many ways you can reduce your expenses on an everyday basis. Even just implementing a few subtle changes to your spending habits can save you money on everyday expenses which will ultimately allow for more spending money/income at the end of the day.
However, if increasing your salary is at the top of your list for this next year then YOU GO GIRL! Take on a side hustle, negotiate for a raise, or pick up some additional hours or shifts in your freelancing gig.
Step #5: Stay in your own lane
These days, there is no shortage of things to admire from afar. Social media has made it so easy to stay connected to friends, yes, but has also somehow made it impossible to enjoy the things we do have without focusing on those that we don’t have. One of the best things you can do in your life is to focus on the things you can control instead of coveting what you don’t have or constantly wishing for things to be different. The key to financial freedom is truly so simple: stay in your own lane. Instead of wishing for what your neighbors seem to have or that co-worker that has it all together, remember that we’re all out here just trying to do the best that we can possibly do. You will never be able to see what’s really going on beneath the surface, so aim to focus not on what is outside your control and instead, focus on becoming a better version of yourself each and every day.
Leave a Reply