Millions of people make New Year’s resolutions every year, hoping to spark positive change.
One of the recurring themes each year includes taking an active approach to improving one’s health or fitness. While one’s personal health is vital, you shouldn’t overlook your financial health as well. Use this new year energy to prioritize handling your personal finances. You will be surprised at what you can accomplish financially within a year. Here are three financial goals that are worth aiming for in 2022.
1. Build an Emergency Fund
An emergency fund is essential for any household. This fund helps when unexpected bills strike, or when your income takes an unexpected hit. Ideally, it would be best to have enough in your emergency fund to cover a few months of essential living costs, such as rent, utilities, and food. If you aren’t sure how much you should put into your fund each month, use our how to budget for beginners blog to form a budget and learn to save effectively.
If you don’t have an emergency fund, building one should be a priority for 2022.
2. Paying off Debt
Paying down debt is important to your financial health. The longer you carry any given debt, the more interest you may accrue on that debt.
3. Save For Retirement
If your employer offers a 401(k), you may be eligible to sign up to participate in the plan and have some money deducted from your paychecks. Otherwise, you may want to open an IRA account and save for retirement through that type of account. Saving for retirement is something you should start right away to allow time for your money to grow.
