5 Simple Tips to Help Achieve Your 2022 Budget Goals

BY Jeffrey December 29, 2021

Budgets are an interesting conundrum. They’re beneficial and often needed for everyone, regardless of income or career. On the other hand, there’s no one-size-fits-all budget that’s going to work for every individual. 

With that said, we CAN tell you that a properly planned out budget is one of the best things you can make for yourself, your family, and your future. Sticking to your budget goals can be tough but will always pay out. Here are a few tips to help you get started with your 2022 Budget.

Save Small Amounts More Often

Whenever we open a new savings account we’re tempted to wait for the big amounts before we invest. A large bonus, a tax return, something that adds a chunk of savings to our account. While this is a great mindset to have, waiting around for those big amounts means we miss out on being able to save in between.

Instead of (or in addition to) those periodic larger amounts, consider saving a smaller amount but more often. Saving a little every paycheck could end up adding more to your savings account in the long run than dumping a large amount in once or twice a year. 

Pay More than the Minimum

We’ve all heard it before: Always pay more than the minimum. There’s good reason for this. Interest on your payment can sometimes take up a significant part of each minimum payment, meaning only a portion of what you pay actually goes towards what you owe. 

An easy way to adjust for this is to find out how much of your monthly payment goes to interest. Add that amount to your monthly payment so you’re paying the full minimum in addition to the interest charges. You’ll pay much less over time and you’ll end up paying off your debt much faster.

Pay Off What You Can

In addition to paying more than the minimum, paying off what you comfortably can afford will always benefit you and your budget. We’re often tempted to pay off our bills and enjoy the rest of our discretionary income. Paying off debt sooner, while not as fun as, will increase your financial freedom down the road, allowing you to enjoy even more of your hard-earned money. 

Switch Paid-Off Debt to Savings Payments

There’s nothing quite as liberating as finally paying off a credit card, new car, or other form of debt. Suddenly these monthly payments of hundreds of dollars no longer go to someone else. YES!! But before you go off on a fun-filled shopping spree, re-evaluate your income flow and start saving a bit more.

If you could afford to live comfortably paying your monthly debts, think about putting some (or all) of that same amount into your savings. It’s essentially the same as paying your bills, only now you’re paying yourself and investing in your future.

Analyze and Adjust Your Small Purchases

Last but definitely not least, don’t ignore your small purchases. These are the fast food lunches, soda stops, dollar movie nights, etc. Individually, these don’t add up to much and we tend to ignore them. Because, really…$5? That’s nothing! 

$5 is nothing until you’re doing it every day, sometimes multiple times per day. We’re not saying don’t visit your favorite coffee shop ever again, only to include these smaller purchases in your budget. You’ll be surprised how quickly they add up! And you’ll be glad of the extra savings when you start adjusting your expenditures.