December 28, 2021

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Personal Finance

9 New Year’s Resolutions We Could All Benefit From

9 New Year’s Resolutions We Could All Benefit From

Can you believe it’s almost the new year?! It seems like 2021 has flown by. As we prepare for 2022, we are sharing 9 financial New Year’s resolutions to help you ring in the new year with intention around your finances. Here we go!

Take time to reflect on the last 12-24 months.

As you come to the end of this year, look at your finances for the last year. As you look through some of your transactions and documents, you might be surprised by how much you spend on some categories, which might influence how you want to set your budgets for next year.  Really evaluate where your money is going and if it aligns with what you value.

Budget!

Just like any business sets their annual budget, it’s good practice to set your personal budget. Start with the things you need – like rent, mortgage, utilities, etc. – then add in the wants like restaurants, coffee etc. If you’re not sure what to budget, look at last year and start from there.

There are many electronic budgeting tools (such as the Financial Manager tool that is found in online banking for Deerwood Bank customers) that connect to your credit or debit card that will help you budget for and track your spending throughout the month.

Do at least 2 Financial Check-Ins Throughout the Year.

We recently wrote about doing an annual financial check in, but these check ins get increasingly more helpful the more often they’re done! At least twice a year (but we recommend quarterly), you should take time to go through your financials (checking, savings, credit card, and investment accounts) to see where you’re at and make sure you’re on-track to meet your annual goals.

Evaluate your subscriptions.

We’re not saying you must cancel all subscriptions but at the very least take a look and make sure you know what subscriptions you have. Sometimes, we sign up for apps or trials and we forget about them (which is kind of what they want!). Look and make sure that all the recurring charges are things you still use and value.

Start investing.

If you don’t already, start investing at least some of your income for the future. This could be in retirement accounts, investment properties, or other sorts of investments. We’ve found that having this money taken from your paycheck before it even hits your account (like retirement accounts) is the easiest way to ensure you’re saving for retirement!

Save for something!

Whether it’s a new car, a vacation, or maybe you just want to build your savings up to a certain amount, either way – start saving each month. Getting into the discipline of saving every month is a good habit, plus, you’ll be surprised how quickly it grows when you do it every single month.

Call your utility providers.

Similar to the subscriptions, it’s good practice to check in with your cable, internet, phone and other providers who you pay each month to see if any other promos are available.  This also sometimes works when you have your home and auto insurance re-quoted by other providers.

Check into refinancing.

If you own a home, check with your local banker to see if you could refinance at a lower rate. Rates have been historically low, and many people have saved thousands of dollars and many years on their mortgage. Talk with your banker to see if it’s a good decision for your financial situation.

Celebrate along the way!

It can be easy to get bogged down about finances, especially when you’re working towards 5-10-20 year goals. Be sure you have short term goals that you can celebrate along the way. Did you pay off that credit card debt? Great, grab a coffee to celebrate! Celebrating will help solidify your practices.

We all have big hopes that 2022 will be a year that brings peace, stability, and a little more normalcy back to a crazy decade. Being intentional about your finances will be extremely helpful in ensuring your 2022 shapes up the way you want it to!

Rachel Carpenter

Rachel Carpenter

Office: 218.825.8946
Email: rachel.carpenter@deerwoodbank.com

Rachel Carpenter is Vice President of Retail Banking at Deerwood Bank. She graduated from Southwest Minnesota State University with a bachelors degree in Business Management. Rachel was nominated Class President of the 2019 graduating class of the Minnesota Bankers Leadership Academy and currently sits on an Emerging Leaders subcommittee for the American Bankers Association. When Rachel gets a free moment, she is an avid mountain biker and skier with her husband, Mike and sons Gavin and Logan.

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