5 ways to smash your financial goals in 2022

In the words of US President Theodore Roosevelt, “Do you believe you can and you are halfway there! This is why it is so important to set financial goals at the start of the year. If you don’t set a financial goal for yourself, it will likely be very difficult to make significant changes to your finances.

Here are five ways to reach your financial goals in 2022 and start improving your finances.

1. Set a realistic budget

Sitting down with your partner and budgeting is probably the most important thing you can do to improve your finances and reach your financial goals. There are many budgeting apps and tools you can use to help you.

Remember to include savings for irregular bills and annual costs like Christmas and holidays, and try to set aside spending money as well.

You should review your budget each month to see how you are doing and determine if any adjustments are needed. For example, you might want to increase your budget in areas where you consistently overspend. Budgeting for four takeaways each month is better than not having a budget and ending up buying 10.

2. Learn about your finances

Most of us, myself included, left school knowing more about the dead lakes than about starting a pension, paying off a credit card, or investing. Make 2022 the year you start learning about your finances so you can reach your financial goals.

There are many good websites, blogs, and books that you can read to find out more.

3. Set up an emergency fund

The past two years have shown that we never know when a financial emergency might loom around the corner. This is why it makes sense to set up an emergency fund to cover a period of unemployment, sickness or other emergency. Most experts recommend saving at least three to six months of spending in a cash savings fund.

Building those savings can be hard work, but it will help you feel more financially secure. You won’t have to rely on a credit card in a financial disaster and you can stay on course for your financial goals.

4. Adhere to your occupational pension

If you haven’t already done so, make 2022 the year of your membership in your occupational pension plan.

With tax breaks and employer contributions, you can actually double your pension contributions. For every £ 80 you pay, the government will add an additional £ 20 in tax relief and your employer will pay at least an additional £ 60. This means that your original £ 80 will immediately turn into £ 160. It’s a great way to build your wealth and achieve your financial goals.

5. Adopt good financial habits on a daily basis

It’s the little things we do that make a big difference to our finances over time. That’s why adopting good financial habits is the key to improving your finances and reaching your financial goals in 2022.

Insurance comparison and personal finance experts Quotezone have suggested five simple, everyday things you can do to improve your finances:

1. Shop around for cheaper rates – you might not have the cheapest auto insurance, home insurance, phone bills or energy bills if you don’t shop. Be careful when shopping for energy deals at this time if you are on a variable rate. Certain fixed tariffs are in fact more expensive than a variable tariff, currently capped.
2. Use less energy – turn off your heater an hour earlier and turn back on an hour later to save on your fuel bill and see if you notice the difference.
3. Avoid single-use plastics – having a reusable coffee mug will save you money on your coffee to go. Or, better yet, grab a thermos flask.
4. Eat healthier – cooking from scratch rather than ordering takeout can save a lot of money. I use simple recipes when I’m in a rush like Jamie’s Oliver 5 ingredients.
5. Stop smoking – if you’ve had a hard time quitting, make it year round! The average smoker spends £ 5,000 a year on cigarettes, so quitting could make a big difference to your finances.

About the Author

Some offers on The Motley Fool UK site are from our partners – this is how we make money and make this site work. But does this have an impact on our grades? No. Our commitment is for you. If a product isn’t good, our rating will reflect that, or we won’t list it at all. Additionally, while we aim to showcase the best products available, we do not review every product on the market. Find out more here. The above statements are owned by The Motley Fool only and have not been provided or endorsed by any bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. The Motley Fool UK recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard and Tesco.