New Year, New You! The New Year brings about a time of renewal, refocus and more people wanting to improve in areas of their lives.
According to Country Living magazine, the Top 10 New Year resolutions for 2022 are: lose weight, eat healthier or change diet, get fitter and exercise more, spend more time with family and friends, be more aware and take care of mental health, sort out finances and cut back spending, travel more, take up a new hobby, sport or other interest, be more environmentally friendly, and look for a new job.
This series will dive into those resolutions to give you tips on how you can improve in whatever area you desire and be a better you in 2022! In the first part of the series, financial advisor Matt Bennett walks us through how to get the most bang for your buck in the new year.
I recently read an article titled, Financial health-giving weight loss a run for its money in New Year’s resolutions.
The article indicated that having poor finances can cause stress which can make it hard to lose weight. It noted that 83 percent of those responding to survey believe financial stability has a positive impact on their lives.
I would agree with that. In fact, having financial stability reduces a lot of stress and worry in our lives and allows us to focus on other positive changes we can make.
One of the things I ask when I am meeting with clients for the first time is, “What does financial security mean to you?”
The answers vary from person to person depending on their financial situation, but often what I hear is that people want to have access to enough money at the times they need it most. Just what does that mean? For a lot of us, it means being able to pay our bills, save some, and have some left over to enjoy life.
If one of your New Year’s resolutions involves a financial goal, how do you reach that goal?
Survey your finances
It’s just like planning a trip. You must know where you are on the map to plot out a course to get to your destination. Make a list of your income, bills, and debts. That will help you determine where you are financially. This will be your starting point.
Set goals
Think about what your goals are and write them down. You may have a goal to become debt-free and save for retirement. You won’t reach goals overnight, but over time, you can reach them. Set smaller goals that are easier to reach so you can celebrate along the way. A smaller goal may be paying off a small bill or being able to buy groceries without having to charge them. Your goals are destinations on the map. As you hit a goal, mark it off the list to motivate you.
Make a budget
This is the route on the map that you take to reach your goals. You know your current finances and you know what your goals are. Now you can develop a budget to help you manage your money and ensure you stay on track. It took me several tries before I found a budget system that worked for me and it may take you some time to find your system, as well.
Just like on any other trip, you should expect delays, destination changes, and there may be times you need to change your course entirely. Review your goals and where you’re at in relation to them so you can stay focused on your goals.
One thing I hear regularly from my leadership is, “Nothing happens by accident. You must be intentional to reach your goals.”
The tips I have shared here will hopefully help you become more intentional and begin to achieve your goals.
Matt Bennett*, FIC, Modern Woodmen of America Financial Representative.
*A registered representative. Securities offered through MWA Financial Services Inc., a wholly owned subsidiary of Modern Woodmen of America, 1701 1st Avenue, Rock Island, IL 61201, 309-558-3100. Member: FINRA, SIPC. Past performance does not guarantee future results. Tax issues can be complex. Consult your tax professional before making a decision.
Matt Bennett, FIC, James.M.Bennett@mwarep.org 662-392-9290.
