{"id":2409,"date":"2021-12-30T17:50:37","date_gmt":"2021-12-30T21:50:37","guid":{"rendered":"https:\/\/www.skypointfcu.com\/wph\/workarea\/?p=2409"},"modified":"2021-12-30T18:04:55","modified_gmt":"2021-12-30T22:04:55","slug":"need-a-2022-money-goal-borrow-one-from-a-finance-nerd","status":"publish","type":"post","link":"https:\/\/www.skypointfcu.com\/wph\/workarea\/blog\/need-a-2022-money-goal-borrow-one-from-a-finance-nerd\/","title":{"rendered":"Need a 2022 Money Goal? Borrow One From a Finance Nerd"},"content":{"rendered":"\n

This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.<\/em><\/p>\n\n\n\n

The new year offers time to set goals, especially if you have a debt hangover from the extra spending the holiday months require. While Gatorade and Advil won\u2019t help much when it comes to this kind of hangover, crowdsourcing ideas from people you trust might.<\/p>\n\n\n\n

That\u2019s where we come in.<\/p>\n\n\n\n

NerdWallet\u2019s personal finance writers and editors share what financial goals they hope to achieve in the coming months.<\/p>\n\n\n\n

Bring back the budget<\/strong><\/p>\n\n\n\n

Making a budget is one of the first steps to taking control of your finances, but it can feel daunting for even the most financially savvy. \u201cAlthough I spend my workweek immersed in personal finance topics as an editor for NerdWallet, I have a secret: I don\u2019t have a budget<\/a>,\u201d says Kathy Hinson. \u201cMy 2022 goal is to change that.\u201d<\/p>\n\n\n\n

She plans to switch from a \u201cpay yourself first\u201d mindset to \u201cevery dollar has a job.\u201d In the first approach, money for retirement, college and emergency savings is diverted from each paycheck by direct deposit, and money left over can be spent. In the latter, every dollar is allocated to an expense or savings bucket.<\/p>\n\n\n\n

Managing your budget over time sometimes requires revisiting what works and what doesn\u2019t. Writer Bev O\u2019Shea wants to start tracking \u201cspending leaks\u201d ever since she noticed one of the biggest spending categories in her expense-tracking software was labeled \u201cuncategorized.\u201d<\/p>\n\n\n\n

Tackle estate planning for peace of mind<\/strong><\/p>\n\n\n\n

Staying up to date with estate planning<\/a> is important as your life circumstances \u2014 and assets \u2014 change. \u201cMy goal is to update my will, which I haven\u2019t touched since my kids, who are in their 20s, were little, and to set up an estate plan,\u201d says editor Sheri Gordon. \u201cOur assets are different and more complicated than they were when we first wrote it.\u201d<\/p>\n\n\n\n

This goal became a priority as Gordon watched her mother-in-law\u2019s health rapidly deteriorate: \u201cWe\u2019re helping go through her financial paperwork. She did a lot of things right (and neglected to do some others) in planning for her future, so we\u2019re learning from her setup to create our own estate plan.\u201d<\/p>\n\n\n\n

Prioritize college savings<\/strong><\/p>\n\n\n\n

College costs are at an all-time high, and saving is on the mind of many parents. Writer Lauren Schwahn wants to focus on \u201cmaking regular contributions to my child\u2019s 529 plan.\u201d<\/p>\n\n\n\n

A 529 plan is a tax-free investment plan that takes advantage of compounding interest and harnesses the power of the stock market to grow money over time to pay for education-related costs.<\/p>\n\n\n\n

\u201cI added funds sparingly in the past, but in order to stay on track, I\u2019m making college savings a higher priority in 2022,\u201d Schwahn says. \u201cI\u2019m setting up automatic monthly contributions from my bank account as an easy solution.\u201d<\/p>\n\n\n\n

Reboot travel without breaking the bank<\/strong><\/p>\n\n\n\n

For a few writers, finding money in their budget to travel is a top priority. Writer Sean Pyles wants to stay on track with savings goals even as he travels more.<\/p>\n\n\n\n

\u201cDuring the pandemic, I got used to saving a good amount of my income, and I\u2019m wary of giving that up,\u201d Pyles says. He\u2019ll focus on finding \u201copportunities to trim costs during my travels and leveraging credit card points for cash back and hotel stays.\u201d<\/p>\n\n\n\n

Writer and spokesperson Kim Palmer has similar aspirations but wants to bring her kids along, too. \u201cBetween the budgetary demands of having three kids and the pandemic, we haven\u2019t ventured much beyond our part of the country in the last two years, but I\u2019d really like to think of a 2022 vacation as an investment in our future family memories,\u201d Palmer says.<\/p>\n\n\n\n

Like many parents with kids too young to be vaccinated, Palmer has \u201cconcerns about booking a trip and air travel, and especially whether or not it makes sense to buy trip insurance.\u201d<\/p>\n\n\n\n

When planning a trip with unvaccinated children, also consider things like picking a destination with fewer COVID-19 cases and favoring lower-risk activities that are outdoors and in smaller groups.<\/p>\n\n\n\n

Save for retirement<\/strong><\/p>\n\n\n\n

Retirement, especially when it\u2019s far in the future, can seem less important than more immediate budgeting needs. However, starting early can be a big help to your future self.<\/p>\n\n\n\n

\u201cI got a late start on retirement contributions<\/a>,\u201d says writer and spokesperson Liz Renter. To get a comprehensive plan together, she gathered documents and hired a certified financial planner. \u201cWhile I\u2019m big into DIY-ing everything, I know the value of delegating to professionals not only for their knowledge and experience, but the accountability,\u201d Renter says.<\/p>\n\n\n\n

As you save throughout your career, it might be tempting to leave 401(k) retirement savings where they are, but after multiple job changes it might be hard to keep track of your money.<\/p>\n\n\n\n

\u201cI\u2019ve worked for three companies over the past 10 years and let my 401(k)s linger in their respective investment managers\u2019 accounts after moving on from each,\u201d says writer Tommy Tindall. His goal for 2022 is to \u201cseek the advice of a CFP to either roll them all into my current company\u2019s account, or set up a personal IRA.\u201d<\/p>\n\n\n\n

Diversify investments<\/strong><\/p>\n\n\n\n

Investing your money into a single stock, bond or mutual fund can be risky, which is why writer Hal Bundrick wants to focus on diversifying his portfolio in 2022. \u201cI want to take some of the risk out of my investments,\u201d he says. \u201cIt just means that in a jumpy market like we\u2019ve been seeing, over time, your holdings get out of whack. Too much of this, too little of that.\u201d Bundrick wants to rebalance his target mix of holdings to match his goals.<\/p>\n\n\n\n

Prioritize saving<\/strong><\/p>\n\n\n\n

Perhaps one of the most common money goals is simply to save more. For writer Laura McMullen, finding ways to save<\/a> despite day care costs is a top priority. \u201cWe started sending our daughter to day care at the beginning of 2021, which has been a massive expense. By the time we covered all of our expenses \u2026 and set aside money for retirement, there just wasn\u2019t much left over for savings.\u201d<\/p>\n\n\n\n

She and her husband plan to devote part of any income increases to savings.<\/p>\n\n\n\n

2022 takeaways<\/strong><\/p>\n\n\n\n

Here are some things you can do to set yourself up for success:<\/p>\n\n\n\n