It’s exciting to create New Year’s resolutions in every area of your life, including your finances. But if you’ve created personal finance goals and you feel like they’re already slipping through your fingers, don’t panic!
I’m going to walk you through some simple ways that you can get things back on track. They’ll include some useful tips for staying motivated throughout the year without feeling stressed out.
One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.
5 finance tips to get your money habits back on track
Here are five unique tips from St. James’s Place Wealth Management for getting your 2022 financial goals back on the path to success.
1. Tackle finance worries head on
Understanding your situation and being able to plan will massively improve your financial wellbeing. Realistically, burying your head in the sand is the worst move possible.
If you need to straighten out your finances, take an honest look at the whole picture. Depending on your goals, some possible actions you can take include:
- Building an emergency fund for security
- Shifting your credit card debt using a 0% balance transfer card
- Opening your first share dealing account and learning about investing
- Setting up a LISA (Lifetime ISA) to save for a home or prepare for retirement
2. Open up about your finances
There used to be a silly notion that you shouldn’t discuss your finances. With so much to learn, going it alone is madness.
Use your network and speak to your partner, friends and family. It may also be worth sitting down with a qualified financial adviser for some professional guidance. It’s okay not to know everything about finance, but talking about your money worries will never leave you worse off.
3. Refer back to your New Year’s resolutions
Sometimes, life gets in the way of plans, and that’s fine. It can take months to build a successful habit like becoming a regular saver.
A great way to keep on track is to write down your money goals for 2022 and then check back on them every few months. This can help to keep you focused and motivated throughout the year.
4. Don’t forget about friends, family or those in need
Part of sorting out your finances may involve thinking of others and tasks such as estate planning. Acting ahead of time to create a proper life insurance policy or prepare for inheritance tax (IHT) could help those you care about most.
Whilst keeping on top of your own financial goals is great, make sure you try to help out anyone close to you who might be struggling. This doesn’t have to mean giving them money. You might just share some of the personal finance wisdom you’ve learned from The Motley Fool!
5. Use or lose your tax allowances
Thinking about taxes might send you to sleep, but it’s crucial to make the most of your allowances each year.
This simple fact is that doing this is going to result in you keeping more money in your pocket. So, make sure you organise your finances in the best way possible.
It could mean using a stocks and shares ISA account for your investments. Or perhaps just making the most of your pension allowances before the end of the tax year in April. Just remember to use all the tools you can throughout the year!
Please note that tax treatment depends on the specific circumstances of the individual and may be subject to change in the future.