Six Resolutions to Improve Your Finances in 2022

1.Automate, Automate, Automate

One of the easiest ways to build savings is by automating contributions, as it avoids having to think about how much money to set aside each month. Many employers allow employees to divide their paychecks so that different amounts go into different accounts. Another option is to set up automatic transfers between accounts. One account could be for everyday living expenses, a second one for discretionary spending (vacations, eating out, gifts, etc.), and a third for savings.

2.Boost Your Retirement Savings

Saving for retirement is one of the most important aspects of a sound financial plan. In 2022 you can contribute up to $6,000 in an IRA ($7,000 if age 50 or older) and up to $20,500 in a 401(k) ($27,000 if age 50 or older). If your employer offers a match, make sure you’re contributing enough to get the full match because… it’s free money! Also, rather than picking a specific dollar amount, set your retirement contributions as a percentage of your paycheck. This will ensure contributions automatically increase the next time you receive a salary increase.

3.Check Your Credit Score and Report

It’s important to regularly check your credit report so you can spot fraud early and ensure the correct information is reported to the credit bureaus — Experian, Equifax, and TransUnion. During the COVID-19 pandemic, you can access free weekly online credit reports from each of the main credit bureaus at With that being said, no one can track their credit around the clock. And that’s where 24/7 credit monitoring comes in. Signing up for credit monitoring will enable you to receive an instant notification anytime there is an important change to your credit report. It reduces lag time when spotting issues and gives you the peace of mind that comes with knowing you won’t miss anything.

6.Treat Yourself Every Once in a While

There are plenty of articles and self-help experts that tell us we could all be millionaires if we just stopped buying coffee, eating out or paying for a gym membership. While there’s merit to being mindful about your spending since expenses like these can add up over time, it’s often the mistakes around the big financial decisions that can have the most significant long-term impact. In 2020, housing costs (like rent and utilities) represented about 35% of the average person’s budget. In short, where you decide to live can have a much bigger impact on your financial well-being than your morning coffee habit.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Carl Holubowich, CFP®

Carl Holubowich, CFP®

Principal @ Armstrong Fleming & Moore, Inc. Securities thru Commonwealth Financial Network, member Terms of Use