You hear a lot about creating financial security, and you may even know that building a solid financial foundation is key to keeping your finances in check. But if it’s something that you’ve never really focused on, you may find yourself wondering where you even begin to keep your finances in check in the new year.
But don’t worry. There are things you can start doing now to help keep your finances in check-in 2022 and build a solid financial foundation. It all begins with learning the basics so you can set yourself up to be financially secure well into your retirement years.
And you’re in luck because your friends at Maggi Tax have put together our top 10 tips to keep your finances in check-in 2022. So, take it from us when we say that financial safety and security basics are easy to learn and implement into your existing financial planning.
Here are our 10 tips to keep your finances in check-in 2022:
Reduce Your Overspending
Whatever your financial goals are, you can’t get ahead and save for any of them if you’re overspending on things you don’t need. Comb through your budget, cut out any subscriptions and services you aren’t using or aren’t necessary, and focus on the bigger picture. Cut out the fat.
Create A New Budget with The New Year
You can’t foresee every expense that will come up in 2022, but by putting together a big-picture budget, you can help prepare for things that require emergency savings. Budget for car repairs, home repairs, and anything else you think you should save a little extra for.
Use A Budgeting App
Instead of relying on your own reconciliation of your account, it’s always good to have a financial program monitoring your expenses and income for you. After all, how many people still balance a checkbook anymore! Download one of the many budgeting apps out there, and with the savings and money management tools they have, you can easily keep your finances in check. Here at Maggi Tax, we’re happy to recommend some of our favorites.
Protect Your Savings from Inflation
With inflation rates on the rise and the cost of essentials such as food and gas rising with them, it may be taking a huge bite out of your savings. Learn about how it impacts your savings and the steps you can take to prevent and prevent it from affecting them. Things like adjusting your investment portfolio or even asking for a raise can help you keep with the rising costs of living.
Get Ahead of Rising Interest Rates
Just like inflation, interest rates may very well be on the rise in 2022. This can impact you and your family in different ways, including increasing your mortgage payments or pushing some banks to offer better returns on things like savings accounts. So, keep your eyes on your mortgage and other loans, and consider refinancing to get a better interest rate if you can.
Increase Your Retirement Savings
One of the best ways to create a solid financial foundation is to think ahead into your retirement years. Thanks to compounding interest, even the smallest increase in the amount you add to savings can make significant difference years down the road.
Be Ready for Tax Season
It’s never too early to get ahead of your taxes significantly since your tax bracket may have changed for the 2021 tax year. So, start getting your documents in order now so you can figure out which of the seven tax brackets you’re in this year. We can help with this!
Learn From Your Financial Past
One of the best ways to keep your finances in check-in 2022 is to understand and review your spending for the previous year. Consider how well you managed your money, where you overspent, and how diverse your investments are so you can stay ahead of anything that may come your way this year.
Create A Plan to Pay Off Your Debt
There’s no better time than now to put a plan in place to pay down your debt, especially if you have high-interest credit cards that are near their limit. So, start chipping away at that debt and work your way to being debt-free in ’22!
Be Conscious About Money Fads
Remember when everyone was investing in GameStop stock? That hasn’t panned out well for anyone unless they owned the stock before the frenzy. So be sure to avoid getting caught up in the excitement of the latest money or investment craze, and instead, evaluate your options and make smart investment decisions.
As you prepare for the year ahead, use these ten pro tips from Maggi Tax to keep your finances in check for 2022. Want to know more about how you can build a solid financial foundation, prepare your taxes, or create an effective estate plan? Call the friendly tax pros at Maggi Tax today at (813)-850-0131.