Get Smarter With Your Money in 2022



It’s not too late yet. We’re still a few months into the year so, you still have that chance to catch up with the money resolution you promised some months ago. 

I know you have been meaning to grow your finances for years now, and you have been deeply resolved that you will make it this year. After going through years of the pandemic, I’m pretty sure you’ve already realized how important an emergency fund is. Most times, you have the heart and the will to be financially independent, but you just don’t know how.

In our desire to help Filipinos become more financially well, we have compiled a list of ways to help you become smarter with your money this year. You can think of these as financial resolutions or simple financial to-dos to help you make the most of your money. Although not every one of these will appeal to everyone, there should be enough diversity that goes right up your alley.

1. Visualize your year.

There‘s no energy more powerful than the law of attraction. If you believe in this, then, you can start by visualizing how you want to be, where you want to be, and how your bank account should like by the end of the year. Take some time to reflect on the past year and consider what you’d like to do differently this time. 

2. Keep track of your progress.

The next thing you need to tackle is how to stay motivated. Make sure to keep track of your progress by calculating your net worth to have a good picture of your financial situation. This is basically your assets minus your debts. Starting this month, try completing this at the beginning of each month to assess whether and how you’re performing on any savings or debt reduction goals.

3. Keep an eye on your finances.

With the popularity of financing apps and online banking, there’s no reason not to be proactive about cybersecurity in 2022. To safeguard yourself and your assets, you must first understand the location of all of your accounts, including banking, retirement, and credit cards. To add an extra degree of security, enable multi-factor authentication and use a password manager. 

4. Improve your credit score.

The two most significant things you can do to improve your credit score are to pay your bills on time and in full every month and keep your balances low. The length of your credit history, the last time you applied for a new form of credit, and the mix of credit accounts you use are all factors considered by credit companies. 

5. Boost your savings rate.

Your savings rate is the difference between how much you save and how much you spend as a percentage of your monthly income. If you boost it even slightly, you will be in a better overall financial situation. You’ll have more money saved for a rainy day or to put toward other goals like buying a house or expanding your investment portfolio.

6. Cut down your expenses.

To prioritize your costs, make sure you’re spending on the things that matter to you. Note all of your non-essential expenses over the previous three months to do this. Then, prioritize them, and try to remove or cut spending on those that aren’t as important or vital. Consider how much money you’d save if you put that money toward one of your goals.

7. Invest in funds.

Are you new to investing? Do you have a few hundred pesos to invest in? Invest in either an index fund or a mutual fund. There are trendier options out there, but for most newcomer investors, these two funds work well most of the time. You also need to diversify your investments to protect you from market downturns. 

8. Learn about cryptocurrency.

You shouldn’t put all of your money into cryptocurrencies right now, but you should understand them and how they function first. Study how it’s the perfect time to buy some tokens during a bear market, which is right now. But, just like any other type of investment, regardless of the asset, you should never invest more than you can afford to lose.

9. Make the most of your money

Check where your money has gone over the last year or so. Are you happy with your spending habits and where you spend your money? Your own expenditure isn’t going to make a difference in the world. In many respects, your funds, on the other hand, symbolize your voice. When working with them, exercise caution.

10. Invest in yourself.

Naturally, the “responsible” personal finance classics are: pay down debt, put money into investments, and put money away for a rainy day. But, if you’re able, spend some of your money on yourself this year in a way you’ve always wanted to but couldn’t justify before. Make a promise to yourself in 2022, whatever it is that makes you feel better. You’ve earned it.

If you’re ready to make some adjustments to my spending and saving habits, this is definitely a fantastic place to start. You should get started as soon as possible. As you know, you need some catching up if you really want to make it this year. 

Another thing to consider is that you don’t have to check off every single item at once. Make a note of it and return to it throughout the year. Good luck!