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Many of us are familiar with New Year's resolutions -- eating healthier food, staying in touch with friends, and exercising more are popular ones. While these resolutions might do you a world of good, it also pays to think about some of the financial changes you could undertake in the new year. Here are five financial resolutions Americans are making for 2022, as per a recent MassMutual survey.
1. Put more money into savings
Many people have had to dip into their savings accounts to cover extra expenses or deal with income loss during the pandemic. It makes sense that of those planning to make a financial resolution for the new year, 37% have the goal of growing their savings in 2022. You can do so by limiting the amount of money you spend on non-essentials, or by getting a side hustle on top of your main job. That extra income won't be earmarked for existing bills, so you'll be in a great position to save a lot of it.
2. Stick to a budget
Following a budget is a great way to make your savings goals more realistic. If you're on top of your spending, you'll be less likely to use up too much of your earnings. And, you can decrease your chances of landing in debt. A good 27% of resolution-makers say they really want to stick to a budget in 2022. If you're not sure how to get started, you may want to look at some different budgeting apps and see if any make the process simpler.
3. Enjoy more experiences in the new year
A lot of people stopped going to events during the pandemic. Now, 25% of those making resolutions say they want to enjoy more experiences in the new year. Following a budget is a great way to make that possible.
4. Pay bills on time
Paying bills on time could be your ticket to an excellent credit score. In fact, it's actually the most important factor that goes into determining that number. Among those making resolutions, 22% are pledging to pay their bills on time in the new year. And budgeting could help make it so you're able to keep up with your expenses without having to be late.
5. Start an emergency fund
The pandemic has taught us that life can change in an instant, and that it's important to be prepared for the unexpected. That's why, as a general rule, it's important to have an emergency fund with enough money to cover three to six months of essential living expenses. Of those people who are making New Year's resolutions, 22% say starting an emergency fund is a big goal for 2022. If you're behind on emergency savings, it definitely pays to do the same.
Once again, budgeting will help you boost your savings because it'll help you manage your spending. If you're willing to get a side hustle in the new year, that extra money could help you grow your emergency fund more quickly.
What resolutions do you have on tap?
Your financial resolutions for 2022 may look similar to the ones above. Or maybe you have a different goal, like paying off debt or buying a home. Either way, following a budget and boosting your income with a second job could help you meet your objectives, so it pays to think about doing both in the new year.
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