We all start the new year with great intentions, and organizing your finances is right on top of many people’s wishlist for the new year.
As the end of the year approaches, it’s common to start thinking about what you want to change to improve your life in the year ahead. Organizing your finances is an excellent place to start, especially if you consider that financial stress is a leading cause of anxiety and depression globally.
In fact, according to the American Psychological Association (APA), money is the top cause of stress in the United States.
Therefore, if you want to have a healthier, happier life experience in 2022, organizing your finances can be one of the most impactful steps you can take.
But, how do you get started?
Here are four steps that you can take today to organize your finances for a successful 2022.
Set aside some time to do a though evaluation of your current financial situation. Collect all of your financial paperwork, including all investments, savings, income, and debt, and organize it on a single spreadsheet. Find out what your current net worth is and what your financial landscape looks like for the next 10 years.
Once you better understand your overall financial status, decide what you would like to change in 2022. If you are spending more than you earn, you might want to reduce unnecessary spending. If your debt repayments represent a significant portion of your current budget, you might want to focus on paying down your debt. If you are a few years away from retirement, you might need to focus on saving. Whatever change you want to make in 2022, write it down and set goals with achievable deadlines.
Once you know what you want to achieve financially in 2022, translate your goals into plans. Decide exactly what steps you need to take to achieve your goals. Once you know what you need to do, decide what steps are most important and do those first. Set deadlines for yourself and hold yourself accountable.
If you are not confident in managing and planning your finances effectively, reach out for professional advice. You can consult a certified financial advisor to assist you in planning for your financial future.
If you are the beneficiary of a structured settlement or annuity and your financial needs for 2022, have changed significantly, reach out to us at Rising Capital to discuss your options.