Financial Planning 2022

The end of another turbulent economic year brings record levels of debt burdens and difficulties earning an income. The start of a new year presents an opportunity for many Americans to learn from past mistakes and set goals to improve in the upcoming months.

Here are a few strategies for boosting your budgeting and financial planning for 2022:

Develop a budget – To develop an outline of a budget and stick to it, people these days tend to use financial apps or online services. Find an app or use your online banking app to set custom spending alerts and set goals for saving and alerts when spending is too high.

Boost your savings – It can be difficult to think about saving when you are struggling to pay your bills. However, saving money doesn’t just protect you when an unexpected expense happens, it actually can build your financial profile. Automating a transfer from your checking to your savings following payday is the best way to make sure you don’t lose off on savings. This will keep you saving each month, even if it’s a small amount, towards a larger goal.

Cut the cards – Try to avoid using your savings at all costs for anything other than planned purchases or emergency repairs. It is never a good idea to use your savings to cover credit card or debt payments. This only creates more debt to an existing financial burden.

Pay more than minimum – The best way to manage your debts is to pay them off as soon as possible. Rather than paying the minimum payment each month, set aside a desired amount above the minimum and pay it each month. This allows you to pay the monthly interest, while also paying down a larger portion of the total balance; rather than just spinning your wheels paying the minimum fees of mostly interest.

Make adjustments – Making adjustments to your financial plan based on performance is one of the most crucial aspects of financial planning, and is often overlooked. If a part of your financial plan isn’t working for you, maybe you’re saving too much and not paying down your credit card balances. Evaluate the specifics plan and make a thoughtful choice about what is working and what is not working. Then you can make informed adjustments to the plan.

If you are experiencing financial hardship, or are worried about your growing debt burdens, contact our team of Modesto bankruptcy attorneys today.