6 Things to Consider as You Plan Your 2022 Finances 

As we ring in the new year, you may choose to participate in a New Year’s Resolution or two around working out more or perhaps breaking a bad habit. But this is also the time of year that you should review and set some goals around your 2022 finances.

You may already have some of the basics down when it comes to your finances or maybe you are putting a plan together for the first time this year. Whatever the case may be, here are 6 things you should consider as you plan your 2022 finances:

 

1. Create a budget.Even if you already have a budget, don’t skip this step. This is the foundation of a good financial plan. So if you don’t already have one, take the time to make a plan now for your monthly income, expenses, and goals. If you already have a budget, this is a great time to update it. Did you get a raise this year? Or did you change jobs? Did your expenses change? Are you working from home now and aren’t spending as much on gas? All this and more can affect your monthly budget!

 

2. Review your long-term financial plan.
   Your budget is what keeps you on track for the month, but a financial plan helps ensure that you are set 10, 15, or 30 years in the future. A good financial plan will project how much you will have to live off of once you have retired and tell you how much money you should be investing now to be well taken care of. Everyone should have a financial plan so they can retire well.

 

3. Celebrate your progress.
   Living by a budget can feel like hard work. It’s important to celebrate the progress you have made in 2021. Did you pay a chunk off your credit card? Pay off a student loan? Make more than the monthly payment on your mortgage? Save a nice cushion for emergencies? All of these are reasons to celebrate! Take a moment to look back at where you started and the progress you have made.

 

4. Set new goals for 2022.
   What do you hope to accomplish this year? Maybe you know you’ll need a new vehicle and want to save to buy it without a loan. This is the time to set those goals and make a plan for how you will accomplish it. This is also a good time to see if there are any upcoming expenses you know will happen this year. Maybe you have a child that will need braces soon; make sure you are planning ahead for expenses you know are coming.

 

5. Get ready for tax season.
   You don’t have to wait for April to file your taxes. If you are expecting a refund, why not file early so you have that extra money now? Or if you think you may owe taxes, January is the perfect time to find out what your payment will be. And you’ll have a few months to save up for that payment rather than filing at the last minute and having to scramble to find the cash to pay. If you haven’t used a CPA or an attorney to help file your taxes, you should look into it! Tax laws are vast and sometimes complicated. A CPA or attorney may be able to save you a lot of money in taxes in certain cases.

 

6. Get a second opinion.
   Finances can be difficult, especially if a financial plan is newer to you or you are unsure how to best plan for the future. If you need help putting together a financial plan, or if you would like someone to review the plan you have, don’t be afraid to get a second or even third opinion from a financial advisor. They are able to let you know if you are on the right path and if your plan will meet your needs now and in the future.

 

If you are feeling overwhelmed or lost at how to plan for 2022 and beyond, you are not alone! It can be difficult to know how much money you will need and where to invest it to fund your retirement. If you want to know for certain how much money you’ll need to set aside, if you are investing in the right places, or if you want a second opinion on how your financial plan is going, be sure to schedule a complimentary meeting with our team here at 210 Financial or give us a call at 309.263.1333!

Happy New Year!

 

This material is provided for informational purposes only. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. 210 Financial is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and 210 Financial are not affiliated companies. 1170156-01/22

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