Your Financial Plan for 2022
It is a brand new year and with the arrival of 2022, it is a great time to take stock of your finances and your financial health. Many will make New Year’s resolutions and for the last few years, paying off debt and saving are at the top of that list.
What I would suggest is to change your mindset about making it a resolution. We know that the vast majority of resolutions fail and so you may want to treat this as more of a financial plan and not just a New Year’s resolution.
A financial plan incorporates your income and expenses, as well as your debt servicing costs, and your financial goals or savings. It should be an ongoing work in progress and not just something to address in the new year.
Firstly, it is important to set a schedule to periodically review your financial plan. This could be on a bi-weekly basis, a monthly basis, or even every couple of months. If your income and expenses are something that change frequently, you should be reviewing your plan just as frequently. If you have a partner in your household, it may be something you can treat as a date night once a month, where you sit down together and review your financial plan. Good communication with others in your household is important so that everyone is on the same page.