For many of us, the start of a new year brings with it the longstanding tradition of setting personal and professional resolutions that we would like to achieve in the months ahead. In 2022, kick off the year by hitting the reset button and getting your finances in check. Whether you’re planning a vacation, purchasing your first home, or preparing for retirement, developing healthy savings habits can help put you on the right financial footing.Here are a few tips from Canada’s credit unions to help you keep more money in your pockets in 2022:
1. Start the new year with a new budget (And stick to it)
Want to get financially fit this year? It’s never been easier! Instead of watching your money run out before the end of the month, determine your monthly income and expenses and create a budget to help you get a clearer picture of where your money is going instead of where it went. If you are not sure where to start, visit your local credit union and speak to a financial advisor to create a financial plan that could help you save more money in the new year.
2. Save with a side hustle
Now, rather than reducing expenses to grow your savings, try adding more cash to your wallet with the help of a side hustle. Depending on your skills and schedule, there are a host of jobs you can choose from to help you reach your savings goals. If you are skilled on the road, consider registering as an Uber or Lyft driver to earn some extra money. If you have a spacious home, consider hosting your apartment for guests on Airbnb to rake in a few extra dollars. By adding a side hustle, you can enjoy your high-priced mall shopping trips and nights out with friends’ guilt-free.
3. Put money away for a rainy day
If there’s one lesson the world has learned from the COVID-19 pandemic, it’s the value of having money set aside for unanticipated expenses. If you don’t already have an emergency fund, 2022 is the perfect time to build one. Whether you make $30,000 or $300,000 a year, earmarking money for life’s unexpected moments – such as medical emergencies, household repairs, or job loss – can help preserve your long-term financial wellbeing. Start by setting aside a small amount of money each month to put towards any emergencies that could be financially taxing so that you can handle life’s toughest moments more easily.
4. Think twice before making a purchase
In-store and online shopping is a common cause of debt for many Canadians, and why you might ask? Because a lot of us are impulse shoppers. So, when we see that new pair of shoes or the latest iPhone, we don’t need it, but we want it – so it goes in the shopping cart.
To help curb the urge to splurge, the next time you are at the store, only purchase the items on your shopping list and put the extra ones back on the shelf. Give yourself 48 hours to think over the items you wanted to purchase because, after some thought, we often realize these items were not essential. Take the money you would have spent on a luxury item, and instead treat your future self by increasing the funds in your savings or RRSP account.
5. Put that Starbucks coffee back in your pocket
Have a barista that knows your go-to morning coffee order by heart? 2022 might be the perfect time to take a break from that relationship. Taking a daily trip to your favorite coffee shop is a ritual for many, but it’s a costly one. You don’t have to go without your morning coffee, but rather make it at home! Investing in a quality coffee maker might cost you more money upfront, but you’ll save more in the long run by making the coffee you love from the comfort of your own home.
Kickstart the New Year right…become a credit union memberWe hope that these tips set you up to reach your savings goals in 2022, and credit unions are a great financial option to help keep your finances on track all year round. Not yet a credit union member? Find your nearest credit union click here.