Every year comes with a new resolution that includes managing finances or rather improving old habits that includes finances (which is unnecessary spending). Be it entrepreneurs or simply just us ordinary citizens. Festive is all about spending to most people and with that spending, no one is saving. Now the new year(January) brings nothing but lots of debt. Here are 10 finance tips to help us in the first quarter of 2022.
1.Reveiw your budget. It sounds easy but it is one of the most powerful financial tips. By looking at what you have spent last year, that should guide on what to save in the first quarter of 2022.Looking at your expenditure, you may find out that you spend more on an unnecessary item which you can improve in 2022. Same applies for entrepreneurs, the more you draft and review the budget the more you will improve in the new year.
2. Kimberly Carver, Financial planner preserving family wealth and business continuity across generations advised not all debt is bad debt, however one of financial tips is Managing your debt. She advises that it is okay to have healthy debt of course depending on what you want to invest or buy. However, you would need to manage your debt. One should not have too much debt that it is impossible to start a new year as that money will only go towards your debt. This happens a lot during the festive season and people can’t navigate 2022 with a successful financial status due to past debt.
3.Having a financial Plan. A financial plan is a road map to your financial success. It is important to lay everything on the time about where your finances are going to go. Have this at an early stage so that whenever you feel tempted to use money unplanned, you are guided by a financial plan. A road map.
4.Review Insurance Plans. It is quite important to review insurance plans according to Kimberly Carver, as this makes sure everything is updated. You know where the money is going and that it is enough money. As the new year welcomes us, we often don’t pay attention to insurance plans, however they also form part of the budget and will help us move in the new year.
5.Writing money diary. Dealing with money can be stressful and can cause one to be anxious, especially coming from a month of over spending. It is advisable to have a change of mindset and opt for a money diary. You would document all your feelings towards money and what bills work you the most to avoid repetition of last year.
6.Subscribing to a financial post cast is very beneficial. You will learn new things about money than you ever can imagine. It is great to find out how others manage money and their struggles. That can lead to a better financial navigation for 2022.
7.Tracking your spending. Knowing where you spend the most and least is essential for a start of a productive year. Look at your expenditure and see what consumes more of your money, whether it’s a business or just citizens. There will always be a room of realisation of how you don’t need that expenditure.
8.Invest your Money. This needs research and more knowledge. However, people should in the new year look into investing their money, especially with the shock of pandemic. It is important that you have your money where there is profit should there be any setbacks such as pandemic.
9. Setting a Goal. This goal needs to be specific, whether you are an entrepreneur. What is your goal? Is it hiring more employees? Improving your most platform that earns you more money? Are you cutting down on expenditure? What is the goal?
10.Cut things that are not working as Financial experts advise. Friends that encourage you to spend more or even family members. You would need to rethink keeping them in your life. This is going to make sure you are focussing on your financial status for 2022 and live without pressure.
In all, dealing with finances is not easy at all. It is even worse after the month of over spending which is December, However with the mentioned tips. Financial success is achievable regardless of challenges along the journey.