Your Money & You - Tips for Financial Success in 2022
It’s the start of a new year, and you know what that means! Fresh New Year’s resolutions you really don’t want to break this time around. But unfortunately, according to a study conducted by OnePoll, the average American only keeps their New Year’s resolution for 36 days. Not to worry though—we’re here to make sure that you set financial goals that you can stick to and achieve in the new year.
In 2022, we’re going to keep you and your wallet healthy and strong! Let’s ring in the new year with some foolproof financial tips brought to you by our expert panelists Michelle Black @MichelleLBlack, Del Shawn Hayes @delshawnhayes, and Alyx from @ColfaxInsurance. From managing debt and budget planning to saving strategies and credit health, they’ve got your back.
Missed the Tweet Chat? Here’s a recap:
Q1. It’s New Year’s Resolution time! What are your financial goals this year? Have you constructed a plan to reach your goal? If so, what’s your plan? How do you track your progress and how often should you check in? How do you keep your motivation to stay on target? #WinnieSun
Alyx: I have 2 main financial goals this year:
1 – make monthly extra payments on my debt
2 – squirrel some funds away in an emergency fund
Del Shawn Hayes: My personal financial goal this year is to pay off my house. My plan is to increase payment to my principal each month. I will track my progress monthly by highlighting my visual mortgage-free chart until I have zero balance.
John Lim @bemovingforward: Same as every year, invest and save, reduce unnecessary expenses. I think it's important to make this a regular habit and not just a year-end/beginning goal. Budgeting, tracking (esp recurring and subscriptions) and working with financial pros.
Q2. Budgeting is such an important tool when it comes to maintaining healthy finances. What’s your budgeting process look like? Do you tend to create a new budget for the new year? How do you anticipate your spending and plan accordingly?
Maiko Sakai @MaikoSakaiBiz: I'm all about creating a "breathable" budget knowing nothing goes the way we plan. I do "rebalance" throughout the year as things change.
Alyx: My budgeting process always starts at a break-even point.
What do I make a month?
What are my necessary expenses?
Can I repurpose an old budget to fit the new budget?
John Lim: It's micro and macro. Daily tracking on apps and spreadsheets, holistic with monthly, semi-annual and annual reviews. I think the last two years+ have thrown a lot for a loop and highlighted the importance of emergency funds and now inflation hedges.
Del Shawn Hayes: My budgeting process is to spend money on paper first before inserting it into my spreadsheet. You really become one with your money. It’s really a connection and when you see all your expenses on paper is an eye-opener.
Q3. Who doesn’t love to save money on a purchase?! Gotta save where you can. Every little bit helps! How do you make sure you’re getting the best deal possible? Have you ever been successful at negotiating the price of a bill / service / big purchase? Tell us how!
Maiko Sakai: Research. Another important factor to consider is the concept of "opportunity cost" by taking into consideration what your time is worth. Is getting an extra 5% off worth you spending 3 additional hours? It depends. Sometimes convenience wins.
Amy Hampton @lonedaisymedia: Do your research! Sometimes the obvious place isn't the best deal. And sometimes you spend as much chasing a good deal then just buying local. We've been trying to buy local first and minimize shipping. Does this thing need to ride an airplane to get to me?
Del Shawn Hayes: To get the best deal possible I may call a service provider and ask for the retention department and ask about any upcoming promotions or plans.
Q4. Pick up the perks! What creative ways can help you get the biggest bang for your buck when buying things you need? What spending strategies do you take advantage of to save the most money on necessities? Coupons? Price comparison sites? Credit card rewards?
Alyx: Take advantage of every little money saving thing you can!
@Honey automatically searches for the best discount code for online purchases
@Verizon has a monthly reward program through Verizon Up
@Chewy has discounts on recurring shipments for pet food/supplies
Michelle Lambright Black: I LOVE saving $ & earning rewards on purchases I need to make anyway. One of my fav. strategies is using shopping portals, like @Rakuten, to earn more rewards or cash back. Sometimes you can stack on offers from card issuers & earn rewards 3X over!
Maiko Sakai: Without going overboard, bulk-buying. I also anticipate many new forms of DeFi 2.0 perks that can be user-friendly & great deals.
Q5. Saving is great, but increasing your income is optimal! How can you boost your income when you’re already working? What side-hustles have you done / will you be doing in 2022 to make some extra money? Any unique ways you’ve made money? Would you do it again?
Suzanne Brown @mompowerment: When it comes to income, it's helpful to have multiple revenue streams:
*Affiliate links (especially for stuff you already use and recommend)
*Real estate that you can rent out (I've seen more people going in with other families for these lately)
*Create a course
Michelle Lambright Black: I started freelance writing to earn extra money from home years ago. In 2019, I turned my side hustle into a full-time business. For 2022, my goal is to increase the income I earn outside of writing through speaking engagements & brand partnerships.
John Lim: There are so many ways to leverage skills and items into side hustles. @Poshmarkapp is a fantastic one for clothes and they've expanded to home goods and electronics.
Q6. Credit where credit is due! Your credit health is an important part of your overall financial wellness. What steps should you take to make sure your credit is in the best shape? What can you do to improve it if it still could use some work?
Alyx: Always always ALWAYS do your research before signing up for a new credit card:
What is the interest rate?
What rewards do I get for using the card?
Are there fees I need to know about?
What steps have the provider taken to avoid security breaches?
Kathy Van Duzer @katwife: Pay off the majority of your credit cards when you can. Keeping one or two cards with little to no debt keeps your credit line high. If shopping buys are tempting, see if you can pay with social money apps like Paypal, Venmo, or Zelle. Keep track of your cash.
Michelle Lambright Black: Check your 3 credit reports, dispute any errors, & make a list of areas for improvement. Paying downcredit card debt is a smart move that could save you money & boost your credit score. More credit tips here: https://creditwriter.com/revolving-utilization-and-your-credit-scores/
Q7. Debt is a real problem for so many. What are your most impactful strategies for paying off debt? Where do you start? How do you keep the debts off? Are there some debts that are ok to keep balances on? Why / why not?
Michelle Lambright Black: A budget is your best friend when you're paying off debt. It's a tool that can help you find more $ to throw at the problem (& later to save & invest). Having a system to track spending makes you less likely to create new debt in the future.
Low-interest debts w/ potential to make you money (i.e., mortgages, business loans, etc.) are another matter. You can leverage good credit to borrow $ that may increase your net worth in the long run. But watch your pace & don’t overextend yourself.
John Lim: Do a deep dive, negotiate terms, interest, etc. Make a plan to tackle it. If necessary work with a professional. Also a big proponent of increasing cash flow with side hustles, passive income, investments, etc. to liquidate debt faster.
Alyx: Do research before taking on new debt – can you actually afford it, what is the interest rate, etc.
Pay off credit cards every month when possible
Pay more into your debt than the minimum every chance you get and dump extra payments into the principle
Q8. So many encounter financial struggles at one time or another. What are the best resources to utilize when you’re having a hard time financially? Where do you turn when you need a money mentor?
Michelle Lambright Black: I love to read & listen to success stories—not of the famous & wealthy, but everyday, hard working people. Some of those people are millionaires NOW, but they got there through hard work, overcoming debt, & being purposeful w/ money.
Del Shawn Hayes: The best resource you can use when the hard time hits is my 30/30/30 method. 30 minutes listening to something about finances, 30 minutes reading something about finances, and 30 minutes watching something about finances.
Amy Hampton: So much status is placed on money and it can be hard when you struggle. Finding someone objective that you trust to tell "your secrets" to is so very important. Shame is a powerful force. Find someone who teaches you better ways with respect.
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Hopefully, after hearing advice from both financial professionals and everyday hard-working individuals, you’re even more motivated to get started on building your financial success for this year. Know that here at Sun Group Wealth Partners, you’ve got our full support to commit to those goals and take on your richest lifestyle.
Remember the words of our wise friend, Sophocles: “Without labor, nothing prospers.” So go on—make this year your best yet!
