There’s no better time than the beginning of a new year to re-evaluate your financial habits and make changes. It may be challenging to know where to start, which is where we come in. Here are six different financial goals you can incorporate into the year to come. 

 

1. Work on improving your credit score. 

Take a look at your credit score and figure out how you can improve it – Are you making your payments on time and using a good amount of your available credit each month? There are various things that go into what your credit score is, so make adjustments now to improve it over time. Having a good credit score is crucial! 

 

2. Consider contributing to an IRA. 

It’s never too early to start contributing to an Individual Retirement Account (IRA). Whether you’re in your 20s and have lots of time or have been putting it off for a while, now’s a good time to start. An IRA is easy to set up and contribute to, it’s just a matter of opening the account. 

 

3. Make a new budget (and continue adjusting it). 

If you don’t already have a monthly budget, now’s the time to create one. If you do, it's important that you revisit your budget and make adjustments as your financial needs change over time. Maybe you got a pay raise or decrease, had a baby, got a dog or moved to a new place. All these changes greatly affect your monthly budget and should be accounted for.  

 

4. Pay down some of your debt. 

Financial advisors recommend that you make paying off debt a main priority, so 2022 is a good year to focus on that. Know how much debt you’re in then figure out how much you’d have to pay each month to get rid of it in a year or two, making that a priority over adding to your savings account. 

 

5. Analyze your spending habits. 

Check out your banking history and find out exactly what you spend your money on. Once you add up the cost, you may be surprised how much you’ve spent on clothes, coffee, restaurant food and other unnecessary purchases. Once you get a better idea of your spending habits, make positive changes to avoid overspending and impulse purchases. 

 

6. Contribute to an emergency fund. 

An emergency fund is different than your normal savings account – this is strictly for situations where you must make an unexpected payment. For example, if you get laid off and need cushion money while you find a new job, you end up in the hospital and have bills to pay or you have an issue with your mode of transportation. This year, make it a goal to contribute to this fund and save anywhere from three-six months of normal expenses. 

 

Are you ready for 2022 to be your best financial year yet? If so, try making one or more of these goals a priority in your financial life and you’ll be taking steps in the right direction. Contact Fairfax State Savings Bank if you need assistance!