At the start of each year, many people set new goals. If you want to improve your financial situation, now is an excellent time to outline your resolutions for 2022.
Fidelity Investments recently released the findings of its 2022 New Year’s Financial Resolutions Study. In October 2021, more than 3,000 adults 18 and older were surveyed about their financial resolutions and feelings around money in the upcoming year. The study found that a whopping 43% of those surveyed hoped to save more money in 2022, which was the top financial resolution of those surveyed.
Here are some key findings:
- 43% of participants want to save more money.
- 51% of participants plan to focus on saving for long-term objectives.
- 49% of participants plan to focus on saving for short-term objectives.
- 72% of participants are confident they’ll be in a better financial position in 2022 than they were in 2021.
It’s nice to see most of those surveyed feel optimistic about their financial position in the new year. Having experienced ups and downs throughout the pandemic may have helped.
Whether saving for short-term or long-term goals, making an effort to start saving now can pay off later. It can be easier to achieve other goals in life when you can afford them.
How to make financial changes
If you’re looking to improve your finances, you may be wondering how to go about making changes. Here are some suggestions to help you get started:
- Outline your goals. Before you can put in the work, you need to decide what goals are important. Take the time to outline some short-term and long-term financial goals so you can create a plan.
- Track your spending. If you have no idea where your money is going, it can be challenging to know what you need to change. After tracking your spending for a few weeks, you can see what areas you need to improve.
- Set and follow a budget. A budget is an excellent tool that can help you keep your finances on track. Tally up your monthly income and make a list of every expense you have. After doing this, budget your expenses — including savings and retirement contributions. Be realistic, but don’t be afraid to adjust some current spending habits.
- Don’t ignore your financial troubles. When things aren’t going well, you may feel tempted to ignore your problems. It can seem overwhelming to deal with them, but ignoring your financial struggles will only make things worse. Be honest with yourself so you can improve your situation.
Follow these tips to save more in 2022
If you’re hoping to increase your savings in 2022 or want to begin saving, these tips may help you:
- Open a separate savings account. Keeping your savings separate from your checking account funds can make it easier for you to keep from spending on unnecessary purchases. If you want to open a new account, these are the best savings accounts.
- Automate your savings. Make your life a little easier and set your savings on autopilot. You’ll see your account grow with the regular contributions, and having the process automated means you won’t forget to move money around each month.
- Start small. It may feel like you don’t have much extra money to save, but start somewhere, even if it’s just a small amount. Here’s an example: If you save $20 every week, you’ll have over $1,000 saved a year from now.
January is a great time to think about your financial resolutions for the upcoming year. If your current financial situation isn’t ideal, small changes can help you get closer to your goals. If you want to save more money, start now. For helpful tips, check out our personal finance resources.
