Delyanne Barros has set a goal of reaching a net worth of $ 1.5 million by 2022, which she never thought possible when she had $ 150,000 in student debt in 2008.
“All my life I assumed that I would work full-time until I was 65,†she says. “Changing that narrative is like getting a second chance in life.”
If you want 2022 to be a better year for your money, a New Year’s resolution could be a good place to start.
New Year’s resolutions are not for everyone, and there is plenty of wiggle room between thousands of dollars in debt and growing your net worth to $ 1 million. But for some people, resolutions can be a way to start a new year – especially when it comes to money.
When you have good New Year resolutions, you can help yourself by keeping your goals realistic – with numbers tied – and by feeling compassionate for yourself if you eventually fall off your horse. Just keep going, but maybe take a different approach, says financial therapist Carrie Rattle.
“It takes a while to build self-esteem,” Rattle said in a recent interview with NextAdvisor about how to stick to New Year’s resolutions. “Go back to the triggers or the event that threw you off track, or the size of your goals. Is it too much You have guessed to the best of your knowledge and belief, and now we’re trying something new. “
In the last few weeks of 2021, we asked 10 people to share their 2022 money resolutions. Here is what they said, along with some tips you can apply in your own life.
Delyanne Barros
Position: Expert in personal finance and founder of the Money coach
Resolution 2022: Reach FIRE (Financial Independence / Retire Early) target of $ 1.5 million
As: Barros plans to achieve financial independence through her business and investments, which she believes will be in the seven digits by 2021. Barros says she doesn’t bloat her lifestyle too much and is pouring most of her money into her investment accounts, which are mostly made up of index funds and ETFs.
What you can do: FIRE is a movement that encourages people to live below their means so that they have more money to invest in early retirement or part-time work. Determining your personal FIRE number is easy and can be an instructive way of orienting your investment goals.
Dyana King
Position: Money Coach and Founder of Money Boss Mama
Resolution 2022: Max out Roth IRA for the first time
As: King plans to increase her direct deposit to her Roth IRA by reducing some non-essential items in her budget and increasing her income through her money coaching business and outside employment. “I’m working on a new course that will increase my income and stay on the sidelines all year round,” she says.
What you can do: A Roth IRA is a popular retirement provision tool that allows you to grow your wealth tax-free over time. Opening a Roth IRA can be done in minutes and is a great first step towards investing for many people.
Tarra Jackson
Position: Personal finance expert and author
Resolution 2022: Keep sharing your financial language with others
As: Jackson wrote a book called “The 4 Financial Languages: The Secrets of Communicating About Money” that focuses on figuring out which financial language you identify with most to help you communicate with your partner when it is is about money. She wants to continue educating people about this issue because it “controls how you communicate about money, how you deal with money, how you will use money and even debt”.
What you can do: Your mindset and communication style both play a huge role in how you manage your money. If you have a negative attitude towards money, there are a few things you can do to change it in a positive way, such as: Money scriptto be conscious of your money and find the balance between self-worth and wealth.
Douglas Bonearth
Position: Financial advisor and founder of Bone Fide Wealth
Resolution 2022: Not applicable (Boneparth says he is “not a great believer†in New Year’s resolutions
As: Boneparth is not a fan of New Years resolutions. He says you shouldn’t wait for a specific time in the year to pursue a monetary goal or pursuit. Instead, pursue it when it makes the most sense to you and your financial goals because “there’s never a bad time and it’s never a one-off,” he says. “I know it’s very different from what people are going to tell you, but I don’t believe in New Years resolutions that much, especially when it comes to money. If that [New Year] is your calling, great. But don’t forget that you keep working on it. “
What you can do: If you don’t have big New Year resolutions either, here are 40 smart money moves you can make now or anytime – from starting a passive source of income, to talking to your partner about money, to buying an index fund.
Stella Shon
Position: Author for The Points Guy
Resolution 2022: Start by paying off your student loan debt
As: Shon has taken advantage of the federal student loan repayment hiatus for the past two years, but once it expires, she plans to pay off her student loan debt. She says one challenge will be figuring out how to fit her upcoming loan payments into her current lifestyle, which involves a lot of travel. “I’m really trying to strategize and pay the lowest possible interest rates and incorporate that into my daily budget,†she says. “It’s not about paying them off right away. It’s about finding a sustainable plan that fits my overall lifestyle. “
What you can do: If you have a federal student loan, you have a few months before repayment resumes. The payment pause for federal student loans has been extended to May 1, 2022. However, you can now prepare a few things, such as: B. Update your account information, rethink your repayment strategy, and create a backup plan if you cannot afford payments.
Carrie rattle
Position: Financial therapist and founder of Behavioral Cents
Resolution 2022: Change your money mindset
As: Rattle wants to work to change her attitude towards money because her husband is considering retiring. She says they may start using some of their wealth that they have saved all their lives and she will need to change her mindset to accept that there is not that much income coming. because I grew up thinking that money is security. “
What you can do: There are three things you can do now to achieve the retirement you envision: start saving, make retirement saving a habit, and set a retirement goal.
Jeremy Schneider
Position: Personal finance expert and founder of the popular Instagram account, Personal Finance Club
Resolution 2022: Find more ways to donate to charity
As: Schneider achieved financial independence at the age of 36, which means he can live for an indefinite period without having to work for an income. Since he is young, he wants to keep growing his wealth through his investments so that he can achieve his goal of giving more to charity. “The ultimate goal of money shouldn’t be to die with the biggest money in your bank account; but to maximize its usefulness while we’re still here, â€he says. “In short, I think the purpose of life is to be happy and to help people, so I want to do these things whenever I can.”
What you can do: An effective way to make change and empower others is to give financial support to nonprofits and companies that make a difference. And you don’t have to look far – for example, you can support small businesses in your local economy, or even donate your credit card rewards to your favorite charities.
Larry jump
Position: Financial advisor and founder of Mitlin Financial
Resolution 2022: Gain better knowledge of crypto, blockchain, and NFTs
As: Sprung finds this area fascinating and would like to understand it better, especially since he is receiving more and more inquiries from customers. He plans to open an account with Coinbase and do the best of his education by reading and talking to people who have crypto expertise to learn from them.
What you can do: Crypto was a hot topic in 2021, and everyday investors are curious to see how and if it fits into their portfolio. However, experts say you should resist the hype and approach crypto with the same mindset that you bring into your regular investment strategy. If you are interested in investing in cryptocurrency, ask yourself these four questions first.
Shang Saavedra
Position: Personal finance blogger and founder of Save My Cents
Resolution 2022: Sell ​​your home in New York City (without a seller representative to save on commission)
As: In 2022, Saavedra’s life will change dramatically as she moves her family from New York City to Southern California. “It will be a big change for our family of three,†she says. She plans to meet her goal by 2022 by speaking to others who have sold their homes in the past to better understand the keys to success.
What you can do: Selling a home is about getting the best deal by making your home stand out – while spending as little additional time and money as possible. In trying to sell your home like Saavedra there are several ways you can tweak your strategy such as:
Mike and Brit Miller
Position: Personal Finance YouTuber
Resolution 2022: Increase your net worth by 50%
As: The Millers want to grow their net worth ASAP in 2022 because they want to volunteer. Their net worth has doubled in the past 12 months, and they want to do the same things in 2022 that they did in 2021: work, learn, invest and try to make money that doesn’t depend on your time. You currently have some passive sources of income including YouTube. Mike says how quickly they can grow their net worth in 2022 will depend largely on how the stock market performs. “We want to be an example that you don’t have to work 40 years to retire,†he says.
What you can do: You can literally make money while you sleep. It’s called passive income that allows you to live and work anywhere and not have to rely on staying in one place to earn a paycheck. Here are seven ways to successfully generate passive income.
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