22 ways to make the most of your money in 2022. You can think of these as financial resolutions, or as relatively easy financial to-do’s to maximize your money next year. Not every task will apply to every person, but hopefully there’s enough variety that you’ll find a few that appeal to you.
Figure out your retirement number
It’s important to have an idea of how much you might need stashed away to support yourself after you stop working full time.
- Use a calculator from CNBC Make It to get a basic idea. Remember: Things change over time.
- If you don’t have a Roth IRA, contribute more than you did last year.
Monitor your accounts
To protect yourself and your money, first you need to know where all of your accounts are
- Set up credit report monitoring or freeze your credit accounts if you have no plans to apply for credit in the near future
- A password manager is a smart idea because it keeps track of your usernames and passwords for your accounts across devices
Talk it out
Schedule time with your significant other to get on the same page about your finances and goals
Stop timing the market
Instead of letting your nerves get the best of you, think of a down market as a buying opportunity.
- At the very least, don’t get spooked and pull your money out of your investments. Your bottom line will thank you.
Find some inspiration
If your goals are feeling a little stale, search for new inspiration.
Improve your credit score
Pay off your bills on time and in full every month and keep your credit utilization rate under 30%.
- Familiarize yourself with your employer’s benefits this year.
- Make an effort to finally check that one thing off of your long-term to-do list.
Track your growth
Calculate your net worth
- This is essentially your assets (cash in checking and savings accounts, investments, real estate, cars, etc.) less your debts (student loans, mortgages, overdue credit card bills)
- Try doing this at the start of each month to see if and how you are progressing toward any savings or debt repayment goals
- Use an app like Personal Capital or You Need a Budget
- Create an Excel tracking sheet
- Track the balances in your savings account, checking account, 401(k), Roth IRA and brokerage account
Invest in yourself
Use some of your bonus money to invest in yourself in a way you’ve always wanted to
- Maybe that’s by taking a class for a completely new field or hobby, or finally taking the plunge to move to your dream city.
- Whatever investing in yourself means to you, make a pledge to actually go for it in 2022
Be careful with trading apps
Stock picking can be fun, but it’s not a way for 99.9% of people to accumulate wealth.
- If you are using trading apps or investing in high-risk assets, at least make sure that you have a sizable emergency fund in an FDIC-insured savings account.
Increase your savings rate
Increase it even slightly to have additional money stashed away for a rainy day or for other goals
- Start small by increasing your 401(k) contribution by 1% at the start of each year or cutting out one monthly subscription you don’t need.
Cut down your expenses
Make a list of all of your non-essential expenses, then rank them and try cutting out or reducing spending on the least important or necessary ones.
Learn about crypto
Take it slow, learn everything you can, and never invest more than you can afford to lose
Ask for what you’re worth
For many workers, the time has never been better to ask for a raise.
Prepare for student loan repayments to resume
After a nearly two-year reprieve, federal student loans payments for around 41 million borrowers will resume Feb. 1, 2022.
Make your money count
Your dollars are your voice, so use them wisely
Invest in an index fund
This gives you diversification and helps hedge against market downturns.
- Index funds track the entire stock market, so you can invest in many different companies instead of just a few big companies like Google and Facebook.
- This is a time-proven strategy for building wealth.
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