6 ways to clean up your finances so you can start 2022 on stronger footing – CNBC

December 22, 2021 by No Comments

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The new year is right around the corner, which means it may be time to start thinking about how you see your finances panning out next year. But before you can do that, you may want to think about wrapping up a few loose ends from this year’s financial activities. Doing this now can help you get a strong start on your goals come January.

So Select asked Brittney Castro, a Certified Financial Planner, to share some tips that’ll help you get financially ready for 2022. Here’s what she suggested.

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1. Review how your budget panned out this past year, and adjust it for the new year

Budgeting may not be the most exciting part of managing your money but having an idea of where your money goes is important for your financial health. It can help you figure out what’s working for you and what isn’t, and if there are any expenses that no longer serve you.

Keep in mind that some years you may have larger expenses — like a wedding or tuition costs for yourself or your children. It’s important to plan ahead for these kinds of expenses so you don’t feel blindsided when they come around.

“We have to create a new budget every year because things change all the time, so get used to updating your budget to address all the shifts,” Castro said.

Budgeting can also be tough because sometimes it’s just hard to take an honest look at the numbers in our account.

“Often times we are afraid because there are extra emotions that we attach to our money,” Castro explained. “We’re so self-critical sometimes. But looking at the numbers is the only way to overcome this.”

Budgeting can sound like a lot of work at first, but apps like Mint can simplify the process as it connects to your bank account(s) and credit card(s) and can track where your money goes for you.

2. Automate your investments and savings

According to Castro, automating your investment contributions is a great way to make sure you’re putting money toward your wealth building goals. Sometimes when faced with the decision to spend money for something …….

Source: https://www.cnbc.com/select/ways-to-tie-up-loose-financial-ends/


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