After the holidays, many of us view the new year as a fresh start of sorts, a chance to clean up some bad habits or create new-and-improved ways of doing things. With finances, sometimes small changes can make a big impact. As you’re considering what you’d like to accomplish in 2022, here are some ideas that could reap rewards in the long run.
Pay yourself first
If you’re not already setting aside a little money into savings each month, you’re missing out on a huge opportunity to build a nest egg to help with financial emergencies. Whether it’s an unexpected home or car repair or an urgent medical issue, those kinds of expenses can really throw off your budget. A great way to do this without ever seeing the money is to utilize direct deposit and automatic transfers that put part of your paycheck into a different account you don’t ever see. Out of sight, out of mind and the savings will add up quickly.
Map out big-ticket items
Both in 2022 and beyond, it’s important to plan for big expenses. If it’s a more immediate cost, start setting aside money with each paycheck into your savings account. If the big expense is a few years out, perhaps it’s a great time to open a certificate of deposit (CD) or money market account, where it truly pays to save.
Pay down debt
Plan to tackle your most costly debt first: credit cards. Carrying a balance can really add up over time. If your balance is on the larger side, consider consolidating your debt into a home equity line of credit (HELOC). By paying back the debt in a timely manner and at a lower interest rate, you’ll likely save money in the long run. Another option? The Solarity Visa® has great rates and no balance transfer fees, should you need to transfer an existing balance from higher rate cards. If you have student loans or other debt, tackle the highest interest rates first and give yourself a realistic timeline when you can pay it off. It’s nice to have your eye on the prize.
Invest in your future
Where will you be in 5, 10, 20 or 30 years? There are a number of handy retirement calculators that help you understand the amount of money you’ll need for the lifestyle you plan to lead when you retire. And thinking about that future includes your real estate investment. How is your current home loan working for you? With rates still at historic lows, a refinance could be a great option for you. Additionally, if you’re gearing up for a home purchase, how much house can you now afford? Solarity’ s expert Home Loan Guides will partner with you to walk you through your options (with no obligation to apply)!
Protect your loved ones
Ensuring your estate and will are in order is one of the greatest gifts you can give your loved ones. Without a clear path of what will happen to your assets in the event of your passing, it can be an incredibly difficult task for your family to take on, in addition to grieving their loss. Simply ensuring both your beneficiaries and your will is up-to-date is a great first step.
As 2021 comes to a close, we at Solarity as so thankful for you, our members. Our new year’s resolution is to continue supporting you and your financial goals.