Now is the time to think about the spending moves you ought to make for the upcoming New Year. Why not pencil in time to earn revenue-generating moves that could change your life for the better? Here are three of the best cash moves for 2022.
It is absolutely vital that you do not wait to make sales moves until the new year. You can make money moves at any moment for a new season, month, or even day! With that said, let us get to it!
Why should you make money moves?
This year, consider your finances from a new angle. Consider your finances from a new angle. You can use the budget refresh to reallocate your savings for improved performance each year.
Why not use this time of change to reflect upon your financial situation? With purposeful steps to improve your finances, you can completely change your future financial situation over the coming year.
10 Money moves to make for the New Year
To make changes to your financial situation, here is a list of helpful suggestions. You can begin tackling everything at once or one task at a time. But if you make it through this list, your wealth will be improved.
1. Review your money goals
Setting price targets can help people manage their budgets. You should set goals for short- and long-term savings. Some good examples include setting aside money for a down payment on your first home, paying off debt, increasing contributions to a retirement account, constructing a sustainable income stream, or saving up for a deluxe vacation.
No matter what your financial goals are, it is always a good idea to make sure that you are working toward them. If you haven’t achieved as much as you would have liked to, consider whether you have done everything you could. Look for ways to make major progress toward your goals this year.
Need help defining the financial objectives of your life? Take our free course to help you create the right goals for your financial future.
2. Prepare for tax time
as we steam through the New Year’s festivities, tax season draws near. Be sure that you have the money to pay your tax bill if you expect one this year.
In most cases, you should pay income taxes if you have a secondary job, a small business, or generate income from investments. If you only receive a W-2 paycheck, your income taxes will likely already be deducted.
If you are not sure whether or not you should pay taxes on your annual return this year, talk to a tax specialist early in the tax season. This will provide you with time to save for this important expense. The Interactive Tax Assistant (ITA) on the IRS.gov website helps answer common tax questions.
Perhaps checking in your taxes on Form W-4 will be an eye-opener for you. You might discover that you earned less than you believed after you compute your take-home pay.
3. Boost your emergency fund
If the current worldwide coronavirus pandemic has shown us anything, it’s that life is an uncertain journey. You can prepare for the unexpected by building a stockpile of emergency money.
Most experts recommend setting aside between three and six months’ worth of expenditures in an emergency fund. With those funds, you will most likely be able to cover any sudden expenses that may arise.
To save thousands of dollars, start by paying $1,000. This will cover any unexpected expenses and prevent major financial debt.
Looking for ways to save more money? Check out these top money-saving tips.
4. Add to your retirement accounts
Although retirement may seem like a distant future goal, beginning a retirement savings program now is essential for financial security later in life. Examine your retirement savings program or develop one.
This money move is an essential portion of your financial future. Do not underestimate the significance of correctly planning your retirement savings.
5. Increase your income
It can be difficult to meet all of your financial goals without increasing your income. Fortunately, there are many methods to build a profitable side gig. Although a side hustle requires hard work and resolve, it can be accomplished successfully in 2019.
Another way to boost your income is to work on building passive income streams. The initial work might be tedious, but the long-term returns of these passive income streams could be invaluable.
6. Check your credit score
A good credit score is an important part of building a secure financial foundation. A low score will make it difficult to obtain favorable terms on significant purchases like purchasing a house. As a result, it could cost you more throughout your life.
Because credit scores are so important, it’s important to check up on them frequently. If you discover that you have had your credit score go down, take action to bring it back up.
If you need assistance getting started, take our free course on how to build and elevate your credit score.
7. Automate your finances
Automating your finances for the New Year is my favorite financial move. You can set your finances according to your priorities and then set it on autopilot. You can automate your savings and bill payments to help ensure you are staying on track.
You can begin with only one or two things and expand your budget over time. Be sure to verify your transactions frequently.
8. Double check your life insurance
Is your financial security secure? Without a life insurance plan, your loved ones could be left in a precarious financial situation if something happened to you.
Luckily, you can easily update your life insurance policy. You can either choose whole or term life insurance. Then find a policy that meets your needs and offers coverage for you.
9. Create a budget for the New Year
Creating a budget for the upcoming year is an important aspect of your financial success. You can create a budget that works for your life and your monetary goals. When you create a budget that works for you, it will help you stay on schedule. It’s a good idea to use a budget calendar, too.
Take a moment to consider how your expenses and your goals relate to your budgeting before beginning your budgeting plans. Need help in setting up a budget that works for you? Take our free course to budget your finances efficiently.
10. Take care of yourself
As you manage your finances and think about the list of items you want to accomplish across your life, don’t forget to take care of yourself. The changing season is a stressful time.
Save your money while staying healthy. It is quite easy to do so. Your physical and mental health are key in these troubling times.
Make these money moves today!
January is an exceptional time to make spending and budget plans for the coming year. When you prepare your spending plan for next year, make sure to remember these strategies! Here’s to a very productive new year!