A popular New Year’s resolution is to “be better with money,” however, the intention alone won’t help you improve your financial health without taking action. There are a variety of ways to promote financial wellbeing and reach your goals. For example, just by reading this article, you’ve already taken a small but mighty step — good job!
Whether you want to reign in overspending or take wealth management into your own hands, learn how to improve your financial health with confidence by following the steps below.
Steps to Improve Your Financial Wellbeing in 2022
Before we begin, remember that personal finance is personal. That means there isn’t a one-size-fits-all solution and you are the best person to be in control of your financial health. Your situation and values are going to be different from the person next to you. Take it one day at a time and you’ll be well on your way to achieving financial wellness. Let’s get started!
Examine your money attitudes
Understanding your attitudes toward money is crucial for getting a grip on your finances. When you have a healthy attitude, you’re better able to enact positive changes, whereas unhealthy attitudes, such as money avoidance, will hold you back.
Review and organize your finances
It’s important to take a look at your whole financial picture. Go through all your accounts and review your income and expenses. Additionally, organize your finances in a way that’s easy for you to manage now and on an ongoing basis. The key here is not to make it too complicated so you don’t stress out and quit.
Set financial goals
Setting short, mid, and long-term financial goals is vital because they give you targets to aim for one, five, and 10+ years from now. Without them, you’ll wander around aimlessly. Follow the “SMART” rule — Specific, Measurable, Achievable, Realistic, and Timely — so your goals aren’t too vague to be useful.
Create a well-constructed financial budget
You’ve heard it before, but it’s worth repeating: you need a budget. Like bumper rails at a bowling alley, a budget helps to keep your finances from rolling into the gutter. A budget simply allocates your income towards expenses, savings, and debt repayment. But make it realistic so you’ll actually stick to it. We recommend apps such as YNAB, Pocket Guard, or TrueBill.
Use a holistic financial management app
Budgeting is only a small piece of the puzzle. To improve your overall personal financial health you need to look at your full wealth management picture; all assets (cash/stocks/bonds) and liabilities (mortgage/credit cards/loans) + real assets (house/cars/jewelry/crypto). Sure, you could do everything manually with spreadsheets but that’s time-consuming and leaves room for error. Using an intuitive wealth management app that connects your accounts all in one secure place and is accessible across your devices will help you reach your goals with less effort and stress. It is important to be able to see your Net Worth live so you can see where you are.
Grow your financial knowledge
One of the most powerful tools to improve your personal finances is education. Nobody is born with the knowledge of budgeting or investment accounts. Do your future self a favor by growing your financial knowledge, whether it’s reading a wealth management book, listening to podcasts from trusted experts, or watching video tutorials.
Take Control of Your Personal Finances with Confidence
There’s more to personal finance than “spend less, save more.” Focus on small steps that lead to progress, automation, and solid risk management rather than big goals that demand perfection, and ultimately discourage you. Achieve your financial New Year’s resolution by investing in yourself first, whether that’s changing money attitudes, creating a budget, or leveraging great readily available wealth management tools.
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