It’s hard to believe 2022 is almost here, and that means you’re probably starting to think of some New Year’s resolutions you’d like to achieve. While most resolutions center around improving your physical health, it’s important to remember that your financial health is just as important. Financial resolutions can lead to improved physical and mental health, and can help you stay on track to achieve your goals. Here are five financial resolutions you can consider for 2022.
Resolution #1: Create a Budget and Stick to It
One of the most common financial New Year’s resolutions is to create a budget. It can help you decrease stress for better health, free up time so you can do the things you enjoy, and give you greater control over your finances. Set goals for each month and stay motivated to achieve them by rewarding yourself when you do. Learn more about creating a budget on our Financial Education page.
Resolution #2: Improve or Maintain Your Credit
Credit is one of the most important features of your financial picture. It can impact loan decisions and pricing, and it can also be used to determine if you’ll qualify for things like a cell phone plan, renting an apartment, and obtaining insurance. Building and maintaining positive credit will save you money and give you peace of mind knowing you have the ability to access funds when you need them most. Start 2022 off right by having one of our loan experts conduct a free personalized credit review. This will give you insight on what you can do to maximize your credit in the new year.
Resolution #3: Pay Off Debts Responsibly and Strategically
A large component of achieving your financial goals is to pay off outstanding debt. Many of us carry balances into the new year due to holiday shopping. Before you know it, those balances can add up and make you feel a bit overwhelmed. Start by listing out all the debts you owe, along with the interest rates you’re paying on them. Then focus your extra payments on the balances with the highest interest rates. Before you know it, you’ll begin to knock off your debts one by one and ease your financial burden.
Resolution #4: Build Your Emergency Savings Fund
An emergency savings fund is a safety net that can help cover unexpected expenses without breaking your budget or taking on debt. Emergency savings are meant to be kept separate from your other long-term savings goals and only used in case of emergencies. A fully funded emergency savings account gives you peace of mind during the times you need it most, and helps you avoid high-interest loans or racking up credit card balances. Learn more about building your emergency savings fund in this blog post.
Resolution #5: Save for Retirement
Whether retirement is far down the road or just coming around the corner, there’s no time like the present to begin securing your future. Retirement savings is one of the most important long-term financial goals you can have. Consider increasing your contribution percentage to your employer’s 401(k) plan if you have one. You can also save automatically with an Individual Retirement Account (IRA). Use our retirement planning calculator to determine how much you need to save now to live comfortably in the years ahead.
Make your financial health a priority in 2022. Our account specialists and loan experts can help you assess your finances and provide you with tools to help you achieve your goals. Give us a call or text us at 860-563-2617, start a web chat, or visit one of our Wethersfield, Newington, Berlin, Bloomfield, West Hartford, Niantic, or Middletown, CT locations to get started.