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Financial Goals for 2022

This time of year, many people start to put together plans for the New Year that usually include eating better, being more active, saving more, and spending less.  Having a list is a great start but knowing how to put your list into action is critical!  The actions you take today will lead to the results you see throughout 2022.

We want to help you with your 2022 Financial Action Plan.  We created a list of 8 financial goals and outlined the actions you should take for each to help you see results!

  • Create a Budget
    • Creating a budget, and sticking to it, will help you in more ways than one.  The first step  is to understand your finances and to make adjustments.  One framework we use often is the 50-30-20 Rule, meaning 50% of your after-tax income goes to needs, 30% goes to wants, and 20% goes to savings.  If you are ready to set a budget but don't have a template – we have you covered!  Click here to download our budget worksheet.
  • Pay Off Debt
    • After creating your budget, making a plan for reducing debt is key.  We suggest paying off your smallest debts first.  You may think you should tackle the largest one first, but it is typically best to start with the smallest.  By getting the smaller accounts paid off, they are now off your “debt list,” and you are no longer paying interest on them.  As you pay off the smaller accounts, you can take the money you were putting towards them and use it to increase what you are paying on the larger accounts.
  • Set Career Goals
    • Setting a career goal might not seem like a financial goal, but it could positively impact your income.  Many people often know where they want to go in their career, but they do not know how to get there.  If you find yourself in this position, we have a few suggestions to help you get started! 
      • Talk to your boss, but be prepared.  Do your research and let them know where you want your career to go and the steps you want to take.  Let them know that you would like additional guidance on taking your career to the next level.
      • Pursue necessary or desired designations.  If your career goal involves a particular degree or certificate, put that on your 2022 Financial Action Plan.  You should also talk to company to see if they will sponsor this pursuit.  Either way,  working toward additional designations is an important investment in yourself.
      • Know your worth.  As you look at your career goals, you should also assess where you currently are in your career.  How is your current role serving you (i.e. experience, income, etc.)?  Consider opportunities to right size your job and your compensation.
  • Increase Your 401(k) Contribution
    • Your workplace retirement plan is likely your biggest retirement savings tool.  As your career grows, so should your efforts to save in your plan.  When is the last time you increased your contribution?  Is achieving the 2022 max ($20,500 for those under age 50) a possibility?  Experts say that a 15% savings rate can be key to a solid retirement.  Consider your current savings rate and whether you can save even more – increasing your contribution by even one percent can help you  get closer to your long-term goals.
  • Create a Plan to Check-In
    • Setting your goals and knowing what steps to take is essential, but it is important to stay on track.  Many people start strong, and then life gets busy, and your goals move to the side.  The only way to reach your goals is to make sure that you are checking in on them.  We suggest adding a calendar reminder to your phone for check-ins at least once a quarter.  Even if you fall behind on a specific goal, there is no reason to stop; you can simply adjust and make a revised plan to purse your goal.
  • Celebrate Success
    • Celebrating wins should be the most manageable goal on the list!  Sticking to budgets and paying down debt takes time and dedication.  As your savings grow and your debt lowers, make sure you celebrate the wins!  Celebrating doesn’t have to include a monetary splurge either – consider a creative and healthy “treat” that doesn’t deplete all you’ve worked to save!  
  • Meet with a Financial Professional -
    • If you are already working with a financial advisor now is a great time to schedule your next meeting.  You can review your long- and short-term goals and make sure that you have all your goals accounted for in your financial plan.  If you are not working with a financial advisor – we have you covered!  You can schedule a complimentary consultation with one of our WELLth advisors here.  We would welcome the opportunity to help you on your financial journey!  
  • Get Started -     
    • There is no time like the present to start your goals.  Even though 2022 has not officially started does not mean that you cannot start your goals now.

Setting and sticking to goals can be a bit overwhelming; however, we are here to help.  Contact us if you are making a list of financial goals and are unsure where to start.  We would be happy to help you outline your financial goals and to put a plan in place to work towards achieving them!

Meet the Author: Sarah Krapec, Director WELLth