How many times have you started a year with great intentions to change your financial habits?
And how many times have you fallen back into old patterns of behavior just a few weeks into the year?
If this sounds familiar, you are not alone.
The problem with New Year’s resolutions is that we often have great intentions but lack the tangible plans needed to make meaningful change.
So, how do you change your financial habits to improve your financial wellbeing in 2022?
The first step to changing your behavior is acknowledging what you are doing right and identifying what you could be doing better.
Make a list of all of your achievements in 2021. You might have paid down some debt or reduced your monthly household spending. You might have completed a course or gotten a promotion at work. It’s always a good idea to start with the positives and build from there.
Once you have identified your strengths, it’s time to look at where you could be doing better.
Once you have identified exactly what you want to change, it’s easier to be specific in your resolutions.
If you start the year with the resolution to simply manage your finances better in 2022, it’s hard to hold yourself accountable. If your resolutions are too broad, it’s difficult to measure your success.
Therefore, once you know what you want to change in 2022, set down specific goals and create timelines to achieve them.
If you have ever tried to break a bad habit, you will know that it can be a difficult and emotional process.
One of the biggest stumbling blocks with resolutions is that we tend to focus on the negatives and not the positives.
Remember, as people, we are far more motivated when we are getting things right, instead of being punished for getting things wrong.
So, when you have decided precisely which financial habits you want to change in 2022, focus on the positive aspects of the change rather than dwelling on the possible consequences if you fail.
If you are trying to pay down debt, remember all of the financial freedom you will have once your payments are no longer taking up space in your budget.
If you are trying to manage your monthly spending, remember to budget for a few treats every month so that you don’t become resentful.
Stay focused on what you are doing right, and be gentle with yourself when you stray off the path.
Sometimes, your financial situation is not only about your habits, which you can control. There are outside factors, such as the pandemic, your changing personal needs, which may be at play. In these cases, a simple resolution to change your behavior may not be enough to give you the boost you need to make a success of 2022.
In this case, you may need to take a more critical look at your current situation and consider switching things up to suit your needs in 2022.
If you are the recipient of a structured settlement or annuity, and your monthly payments are no longer serving your needs, you might want to consider how you can adjust the current payment schedule to be a better fit.
If you are not sure what your options are, reach out to one of our account managers at Rising Capital to find out more.
