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CNBC has published a report in which it presented 5 tips made to the site by certified financial experts that confirmed that it can help those who want to increase their money in 2022 achieve this goal successfully. The author began his report by saying that adopting good financial habits in January could pay off by December. The report addresses the five tips as follows:
1- Start by analyzing the previous year’s budget
In this regard, the report stresses that any good financial plan begins with a budget, and that analyzing your expenses for 2021 can help you create smart goals for the new year.
The report refers to what Kasia Marchek, president of the Florida-based Anchor Wealth Group, said, “You can look at the past year to see what you did and what you are happy with, looking back helps you know What do you really want to spend moving forward,” Ankur notes, and part of that analysis should include the spending mistakes you’ve made.
But Dennis Morton, co-founder of Pennsylvania-based Morton Brown Family Wealth, says it’s just as important to “feel proud” of what you’ve done well. “Look back over the past 12 months and say, ‘What did you learn?’ Give yourself a couple of successes here to realize that you can make a positive change, and then turn around and say, ‘Now, what small steps can I take towards the big goals?'” Morton adds.
The biggest obstacle to achieving financial goals is simply that people don’t prioritize them correctly.
“When building your new budget for this year, make sure to review it once a month, especially if it is the first time you are setting a budget,” says Marczyk. “This way, you can constantly ensure that everything is on track and, if necessary, make Timely adjustments,” she continues, “The monthly review is critical because then you can see where you stand in your progress.”
2- Write down your specific financial goals
In this regard, the report says that any expert that cnbc.make-it spoke to accepted the statement that “if you don’t write down your goals, you will find it difficult to achieve them.”
This also applies to short-term goals, such as saving for a car or a house, and long-term goals, such as saving money for retirement, which is especially important for couples, as communication about finances is essential.
“If it’s all in one person’s head, it can be confusing when talking about big decisions,” says Morton. “I think writing this down on paper makes communication easy when there’s more than one person involved in the financial decision-making.” .
3- Create a habit that supports saving or investing
The report says that often the biggest obstacle to achieving financial goals is simply that people do not prioritize them correctly. “If you set up a savings account and say, ‘OK, let me see what’s left at the end of the month, and I’ll save that,’ then you probably won’t get there,” says Marchic. Invest it first, then start spending.The report states that in 2019, millionaire Grant Sabatier told CNBC Make It that this strategy helped him grow his bank account to $1 million in 5 years.The same concept applies to any increase Or a bonus you received at the end of the year, this extra money can help increase the value of your savings and investments.
“It’s the perfect time to go in and save more,” says Charles Sacks, chief investment officer at Miami-based Kaufman Rossin Wealth. “You have to put some in your investments before they get into your greedy little hands.”
“Pretend that money, finance and investing are your new favorite hobby,” Sachs advises his clients.
4- Invest in your financial literacy
Sachs tells his clients that if they make a focused effort to learn about money, even if they have no interest in financial matters, they can make sound financial decisions throughout their lives. Sachs adds, “Pretend that money, finance and investment are your new favorite hobby,” and says, “Look for your mentor, perhaps one of the influencers on “Tik Tok” is skilled in saving money, or it may be a magazine or book. A free book, Building Wealth, published by the Federal Reserve Bank of Dallas, states that the book is available for purchase online and available in hard copy upon request.
“Arguably, training your brain to recognize money will be more profitable than anything else you’ve ever done,” Sachs says.
5- Get started right away, whatever happens
Morton says it’s easy to find excuses for the wrong timing; Maybe it’s a down market, or maybe you’re dealing with personal issues, but you have to find a way to get started right away. “The frustrating thing we hear sometimes is when people think there’s a good time to start. It reminds me of that saying that the best time to plant a tree was last year, and the next best time is now.”
His logic is that the sooner you get started, the more time your money should grow. And when you’re planning decades into the future, even a grueling first year of saving or investing should be just a flash.
“Once you start putting things into perspective, some of those fears quickly start to dissipate,” Morton concludes. “A month or a year, it’s really just a very short amount of time to worry about them.”
