Five steps to have better personal finances in 2022 – Toronto Star

December 18, 2021 by No Comments

If you found yourself going a bit off track with your money the past 20 months, you’re not alone. There’s been so much going on during the pandemic, including working from home, red hot real estate, the holidays and more.

Finding financial focus in 2022 is going to bring you peace of mind and more money. Start with these five steps.

1. Spend with purpose

Make a conscious effort to use your money on things that actually matter to you. Bye-bye to willy-nilly spending and random Amazon packages showing up at your doorstep. Welcome to spending on what brings you happiness and gets you closer to your goals.

Here’s how to put purpose-based spending into action. First, make a budget for the month ahead. This means thinking proactively rather than retroactively. Second, add spending that helps you and your family be well. Third, trim anything that’s not filling your cup. (Sorry, but you still have to pay rent.) Finally, make it balance so the money you spend matches what you earn and nothing more; this will keep you out of debt.

Does your budget make you a bit happier knowing you haven’t wasted any of your precious resources on things that don’t matter? It should.

2. Talk to your spouse or partner about your money goals

You’ve got to start talking in order to make progress. Start with a weekly conversation about your vision for 2022. How do you want it to go? What big goals do you want to accomplish? Are you hoping to travel again or maybe start that business you’ve been dreaming about? What are your financial priorities?

This is where you need to work through your differences. Otherwise, you’ll have a fractured approach to your finances, which is terrible for your budget, bad for your money and can damage your relationship. Hire a money coach or a cognitive behavioural therapist with a money background, if you get stuck.

3. Save a bit more for retirement

Thanks to inflation, everything has just become a heck of a lot more expensive. We’re also living longer because of medical advances. So tucking away a bit extra towards retirement is a great strategy for 2022 (and beyond).

A couple of small moves that will really help are to automate your contributions to your investments, increase the amount you’re investing every six months, and set your …….



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