Beginning a new year provides us all a fresh start, a chance to dive into new opportunities, set new goals, and create new memories. To that end, it also provides a chance to assess your current financial situation and whether you are heading in the direction you would like to be. Below are just a few ideas of financial resolutions you could make as we head into 2022.
- Figure out where you are. How will you know where you’re headed if you don’t know where you’re starting from? A good place to start is comparing your assets (cash, investments, real estate, etc.) versus your debts (student loan debt, mortgage, etc.)
- Monitor your assets. This is two-fold. While it is important to track how your assets are performing, it’s perhaps even more important to monitor your accounts for fraud. Turn on multi-factor authentication where it’s offered for additional security.
- Seek fair compensation. In what many are calling the Great Resignation, many employees are leaving the workforce versus staying in jobs where they are underpaid and undervalued. There has perhaps never been a better time to think critically about where you are in your career and whether it’s where you want to be. Whether it’s asking for a raise, looking for a new job, retiring early, or even just taking a step back to appreciate what you have, now is the time to be proactive about your career.
- Get “it” done, whatever “it” is. We all have tasks we know are important but continue to put off because they aren’t enjoyable. Whether it’s gathering the paperwork to roll over an old 401(k), cancelling subscriptions you no longer use, or starting an estate plan, schedule some time to just get it done.
- Turn expenses into savings. Look over your spending for the past few months. See if there are any areas where you could reduce your spending and reallocate that money to your savings.
- Invest in yourself. Whether it’s paying down debt or taking a class on something you’ve always wanted to try, make 2022 the year you invest in yourself and your future.
As we head into 2022, now is a great time to assess your current financial situation and whether you are heading in the direction you would like to be. If you have any questions about this or other tax and investment related topics, please let us know. We’d love to hear from you.