If you’re looking to get ahead in life, personal finance is a great place to start. Making the right moves now can set you up for success down the road.
Top Personal Finance Moves You Need to Consider
Automate Your Finances
One of the best things you can do for your finances is to automate them. This means setting up automatic payments for your bills and putting money into savings on a regular basis. Automating your finances takes the guesswork out of budgeting and can help you stay on track with your financial goals.
Create a Budget
Budgeting may seem like a daunting task, but it’s actually quite simple. Start by tracking your spending for a month to get an idea of where your money goes. Then, create a budget that allocates your income towards necessary expenses, savings, and debt repayment. Following a budget will help you make the most of your money and reach your financial goals.
Refinance Your Mortgage
If you own a home, refinancing your mortgage can be a great way to save money. Refinancing involves taking out a new loan to replace your existing mortgage. When you refinance, you may be able to secure a lower interest rate, which can save you money over the life of the loan. If you’re thinking about refinancing, be sure to compare rates and terms from multiple lenders to get the best deal.
Consider Investing Alternative Assets
Alternative assets such as precious metals, energy commodities, or crypto currency have become much more popular of the past several years. Blackrock, the largest asset management company in the world, recently released some research suggesting the old 60/40 assets allocation between just stocks and bonds should be revamped to 50/30/20, and create room for alternative assets. Investing in alternative assets such as crypto currency can be especially risky proposition, so you should be to a financial advisor before making any decisions.
Find a Side Hustle
A side hustle is a way to make money in addition to your primary income. Side hustles can be a great way to boost your earnings and reach your financial goals. There are many different ways to make money with a side hustle, so find something that interests you and get started!
Develop Passive Income Streams
Passive income is income that you earn without actively working for it. This can include things like investments, rental property, and even some side hustles. Passive income can provide a great way to supplement your primary income and accelerate your path to financial freedom.
Consolidate and Manage your Debt
If you have multiple debts, it may be helpful to consolidate them into one loan. This can simplify your monthly payments and make it easier to stay on top of your debt. You may also be able to secure a lower interest rate by consolidating your debt. In addition to consolidation, developing a plan to pay off your debt is crucial.
Insurance is a way to protect yourself financially in the event of an unexpected loss. There are many different types of insurance, including health, life, auto, and homeowners. Insurance can be expensive, but it’s worth it to have peace of mind in case something goes wrong.
Find Cheaper Alternatives to Your Subscriptions
Subscriptions can add up quickly, and they may not be necessary. If you’re looking to save money, take a close look at your subscriptions and see if there are any that you can live without. You may be surprised how much money you can save by getting rid of unnecessary subscriptions.
Start a Savings Plan
Saving money is crucial to reaching your financial goals. If you don’t have a savings plan, now is the time to start one. Begin by setting aside a fixed amount of money each month to put into savings. Then, make sure you stick to your plan so that you can reach your targets.
Max Out Your Retirement Plans
If you’re not already doing so, make sure you are contributing the maximum amount to your retirement plans. This includes things like 401(k) s, IRAs, and other employer-sponsored plans. The sooner you start saving for retirement, the better off you’ll be.
Diversify Your Investments
Investing is a great way to grow your money, but it’s important to diversify your investments. This means investing in a variety of different asset classes, such as stocks, bonds, and real estate. Diversifying your investments will help protect you if one market hits a downturn.
Start an Emergency Fund and Keep Growing It
An emergency fund is a savings account that is used for unexpected expenses. This can include things like job loss, medical bills, or car repairs. It’s important to have an emergency fund so that you don’t have to rely on credit cards or loans when something goes wrong. Aim to save at least $1000 in your emergency fund, and then keep growing it until you have a cushion that can cover at least six months of living expenses.
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By following these personal finance moves, you’ll be well on your way to financial success in 2022. So get started today and put yourself ahead of the game! We hope you enjoyed this post about The Top Personal Finance Moves of 2022!
Josh is the owner and lead writer at Daily Wisely. His career has taken him from finance to blogging, and now shares his insights with readers of Daily Wisely.
Josh's work and authoritative advice have appeared in major publications like Nasdaq, Forbes, The Sun, Yahoo! Finance, CBS News, Fortune, The Street, MSN Money, and Go Banking Rates. Josh has over 15 years of experience on Wall Street, and currently shares his financial expertise in investing, wealth management, markets, taxes, real estate, and personal finance on his other website, Top Dollar Investor.
Josh graduated from Cornell University with a degree from the Dyson School of Applied Economics & Management at the SC Johnson College of Business.