What is “Savoring” and How Can it Help You Build Wealth?
If your financial position didn’t change at all for the next 12 months, would you be satisfied? If not, now is the time to figure out what your next move should be to make sure that you aren’t in the same position next year. If you have no idea where to get started then check out the five money moves for 2022 listed below.
If you work for a company that offers a 401k, the odds are that your company offers a match on any money that you put into your 401k. Your first order of business is to make sure you are contributing enough to your retirement account to get the full match- otherwise you are leaving money on the table. If you’re already getting the full company match, increase your contributions. Even a 1% to 2% increase can make a difference and you probably won’t even notice the change in your paycheck. This is also a great time to check on any other potential money that you may be leaving on the table. For example, does your company give any other financial incentives?
Take a moment to ensure that you’ve remembered to list beneficiaries on all of your accounts. This can include retirement accounts, investment accounts, bank accounts and insurance policies. Make it a habit to check these every year to make sure they are up to date. Speaking of beneficiaries, do you have a will? Consider setting up a will if needed.
That’s right, make some plans! Decide what you want to do for yourself this year. Do you want to get out of debt? Buy a home? Whatever your goals are, now is a great time to start planning. It may make sense to enlist a coach or advisor to help you set and work towards those goals. (Check out our goal setting template for some inspiration on how to take your goals and turn them to smaller milestones!)
Do you know your credit score? The New Year is a great time to review your credit and make sure that it is above a 740. This will put you in the best position to accomplish other goals such as buying a home or car.
Did you get a raise? If not, make a plan to ask for one or look for other ways to increase your income. Do you have a hobby that could be profitable? Could you declutter by selling things that you don’t use any more? Use the New Year as an opportunity to bring in more income.
Can you think of any other financial moves that you are making this year?
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Anna Paul, CFP® is an Investment Adviser and Certified Financial Planner. She currently serves as money coach for Snowball Wealth providing personalized financial guidance in areas such as budgeting, building and maintaining credit, estate planning, debt management, and money mindset. Most importantly, she believes in coaching clients to adapt their mindset to their goals. She specializes in helping individuals identify financial goals and take actionable steps towards achieving them. Anna volunteers with Carolina Youth Coalition as a mentor and serves on the Volunteer Income Tax Association. When she isn’t giving financial education presentations, she can be found hiking, couponing, or trying new recipes.