The new year is here and things look…wobbly. On one hand, inflation climbs, new Covid variants emerge, and the global supply chain struggles. On the other hand, job opportunities multiply, salaries climb, and first-time job seekers have more options than ever before. The economy is in flux. Now, more than ever, budgeting is critical to your financial health.
Here are eight money saving tips you can follow to prepare for a more financially sound 2022.
Check Your Overspending
Are you keeping up with the Joneses? Are you easily influenced by social media ads touting the latest must-have/must-do/must-see? Take an honest look at your impulse buys and plan to curb your “add to cart” in 2022.
Download a Budget App
To get a handle on your finances, you have to know where your money goes. A budgeting app makes it easy to track spending, bills, and savings, and can be used at home or on the go. There are a lot of apps out there, from Mint to Quicken to YNAB. Some are free and some require a small monthly fee.
Protect Savings from Inflation
In 2021, inflation rose 5%. That’s the biggest 12-month increase in 13 years. No one knows if the steep increase marks the beginning of a long-term trend, or if it’s simply a post-pandemic course correction. Regardless, it’s time to plan to protect your finances against inflation. Here are some New Year’s resolution ideas for 2022:
- Spend less than you earn
- Don’t buy things severely affected by inflation (cars, airplane tickets, etc.)
- Maintain a diversified portfolio
- Work towards a promotion
Prepare for Your Next Big Life Event
Getting married in 2022? Moving to a new state? Starting a family? Big life events come with big financial consequences. Plan accordingly. Weigh all your options for that reception venue. Run a side-by-side comparison of moving companies. Check if your company offers paid family leave. Crunch the numbers then come up with a budgeting plan to cover the costs.
Reconsider your Savings
“Someday” will be here before you know it. When the pandemic hit, a lot of Americans dipped into savings to get by. It’s now time to revisit any savings accounts you may have had and assess their financial health. Here’s how to start saving money: consider increasing the amount you contribute to your savings by a small percentage, like 1% or 2%. Still coming up short of your goals? Look at adjusting your spending habits to allow for a higher savings rate.
Plan to Repay Debts
Look into all the debt you carry and plan to pay it down. Consider focusing on high-interest credit cards first. Those cost you the most in the long run. Then, once the high-interest cards are paid off, start paying off the debt with the next highest interest rate, and so on.
Fund Your Emergency Account
If your emergency fund took a hit during the pandemic, or if you’ve never started an emergency fund in the first place, now’s the time to plan for unexpected expenses. Experts recommend keeping three to six months’ worth of expenses in an easy-to-access account. Then, when life hits the fan, you have the money you need to minimize the blow.
Get Help At LendNation
Regardless of these budgeting tips, sometimes budgets just get blown. If you find yourself in need of money to cover expenses, online loans from LendNation can help. We offer a variety of flexible loans such as title loans, installment loans and payday loans to fit your needs, all with a hassle-free application. You can apply in-store or online, and you can get the money you need the day you need it. Find a location or apply now.