It’s the New Year, and boy did time fly! With all the resolutions you may be setting, we wanted to add one more to your list if you haven’t already – finances. 2022 can be your year to focus on your finances which can go several different ways such as being better at saving, budgeting, paying off debt, learning more about loans and so on. Continue reading on to see how you can make 2022 your best financial year yet!
Begin Budgeting
It’s time to crack down on your budgeting techniques – whether you’ve been budgeting or not. Utilize an app or good ole’ fashion pencil and paper to layout your monthly expenses. Count everything, even those extra coffees, eating out, getting your nails done and so forth. Once your random expenses, monthly bills, loans, savings, and anything else has been noted, continue to track things for at least three months. By then, you’ll be able to see a pattern and learn where you can trim your spending to help save more money this year.
Enhance Your Credit Score
Looking at loans, credit statements and certain debts should be a priority. You want to make sure you are paying bills on time. If this means setting up autopayment for monthly bills and loans, be sure to do that. Having a higher credit score allows your interest rates on loans to be lower and helps you look more financially fit to lenders. Be sure to pay off any credit card balances to allow yourself a clean slate.
Build Your Savings
After budgeting for a few months, you’ll begin to cut out or back on unnecessary costs. This can then be rerouted to your savings account or an emergency fund. Subscriptions you no longer need and recurring fees you forgot about or didn’t realize were being pulled from your account all will fall into allowing you to save more.
Don’t Forget Retirement
After looking at monthly expenses, cutting back, and growing savings, your next goal should be increasing the amount you are putting into your retirement account(s). Whether this be a 401(k) or IRA, saving for the day where you will no longer have a steady income is extremely important. The more you save now, the less you’ll have to save over time as you get closer to retirement. American State Bank’s team is ready to help you develop the right retirement strategy, so your retirement years are your best years.
Review Your Insurance
Home, health, car and life insurance are all areas where you could be saving money. Do you really need certain pieces added onto your home insurance? Have you looked at what all your life insurance has included and are there certain things you may need to cut out or scale back on? Can you afford a higher deductible for your health plan to allow for lower monthly costs? Does your employer offer an HSA health plan? An HSA plan can come at a lower monthly cost because it doesn’t involve deductibles in certain situations. If you rarely go to the doctor, this may be a good option for you.
By implementing these steps into your 2022 financial plan, you’ll be in a better place by the end of the year! American State Bank is happy to help you with refinancing your loans or looking at different savings options that suit your needs. Happy New Year!
