Here’s what you can do now to set yourself up for financial success in 2022

Here’s what you can do now to set yourself up for financial success in 2022

Jan 7, 2022

A new year signals a fresh start. Cleaning up your finances can make way for a more anxiety-free future. If you have yet to regain balance from all the holiday spending you did in 2021, it is high time you focus on sound money management, and utilize some financial planning tips. Entrepreneurs, for their part, can build a solid credit history. After all, getting back on track financially and focusing on how to increase credit score can reflect positively on one’s business brand and contribute to getting lower interest rates when seeking opportunities for funding.

Overall, the best way to buckle down to setting aside a sum for savings & investments in 2022 is to heed some tips from those who have successfully done it. As a premier financial institution tweeted, “one of the best ways to save money is to set a goal.” Mull over what you might want to save for—whether it is education, medical expenses, or retirement – then map out a plan to save and even make available funds grow. Money-savvy people who figured out early on how much from their budgets their year-end spending would eat up – and reined in spending – were on the right track.

For the rest of us who splurged the moment 13th month pay and bonuses at hand, it is not too late to heed financial freedom tips and lay the groundwork for a more financially secure future. Here are some excellent ways to manage your earnings and ring in the new year on the right financial footing:

For small business owners:

  • Keep personal finances separate from business finances. Using personal accounts – including credit cards — for startup business expenses can possibly lead to unmanageable financial consequences. Taking out a cash advance to fund something related to one’s small business, like purchasing supplies or giving salaries of key staff, entails high interest rate. Credit cards at hand may also not have a high enough debt limit. If you are a small business owner who “must” use a credit card, be mindful of the risks. You need to realize you will be responsible for any debt you incur. The upside is that you can use earned points from frequent card usage toward other purchases. Consider alternatives to a credit card cash advance, but beforehand, keep working on how to improve credit, like paying bills on time; realizing that a card account in collections is a serious negative mark, and therefore requires attention, and so on.
  • Partner with a reliable company, such as a peer-to-peer funding platform with a track record of good customer service, when seeking alternative financing. In the Philippines, an established P2P platform, like BlendPH, can be quite helpful for early-stage funding of your business. The platform also shares practical insights and tips on how to get ahead financially. Uncover the many ways to raise capital for your small business, which may be by utilizing your personal assets (derived from an investment) or by taking out a franchise or business loan with flexible terms.

For investors:

  • Stay ahead of the curve when it comes to investment decisions. Be in the loop when it comes to economic data trends, and do not rely on hearsay. American economist who has served as official of the Federal Reserve Bank Christopher Waller had stated, “when the shock is unique, adapt fast.” Entrepreneurs who have quickly adapted business models to new situations can be emulated. Covid variants that pose a public health threat have slowed down economies and derailed progress toward maximum employment. Sort out facts from myths when looking to invest. Without a set of beliefs about the future, no one would be able to decide to spend or invest.
  • Stay invested and derive positive impact. This is a surefire way to set yourself up for financial success in 2022. Financial tips from the pros make a whole lot of sense.                                                                       

For instance, Global investment bank Morgan Stanley stated the yearend can be a perfect time to assess how well your portfolio aligns with your personal values. Individuals with investible funds can generate positive financial returns while also driving positive change on the issues they have strong sentiments for. When doing your year end planning for the coming year, take the time to revisit your investment strategy and asset allocation.  Is your portfolio apportioned among stocks, fixed income, cash and other investments in a way that is aligned with your goals and suits your risk tolerance?

For Individuals or organizations:

  • Overcome fear of the unknown, something that holds many people back from taking the first concrete step towards financial wellness. Adopting the right money mindset can make a huge difference. Financial advisor Tom Henske noted that fear of the unknown can be stifling. He tweeted, “Taking the first step in getting things going is the hardest part.” Once you arm yourself with knowledge, though, like when you visit a P2P platform like BlendPH, and understand the benefits and requirements of taking out a personal loan or franchise loan, for instance, or know the process when seeking to earn as a consumer lender, then you are well on your way to reaping the benefits from a good product offering. Taking the initial steps to know more about a product offering will also open doors and great partnership opportunities.                                                              

For example, if you are running a school or training center and want to open cash opportunities for your working students, you can get into exploratory talks with a crowdfunding intermediary duly authorized to offer and process business loans (BlendPH) for a possible partnership arrangement.  Obtaining financing can help students or trainees expand their knowledge, develop skill sets, and secure jobs upon completion of education and/or training.

  • Glean retirement planning tips. Retirement may seem far off for many people, but saving early can have huge payoffs. Financial planning articles and first-hand accounts from people who have started investing at an early age and successfully saved enough to ensure a worry-free future, well into their retirement years, inform and inspire.
  • Continue setting aside funds for your emergency fund. Take a closer look at the earnings you make each month, and the needs & wants that consume a huge chunk of those earnings. Not enough? You may explore a side hustle that makes use of a skill or talent you have.  A passive income stream can be that long-overlooked means to get out of debt and achieve financial independence

Becoming more financially stable will not happen overnight. It requires nurturing, hard work, and some capital. If you have long been putting off savings, buckle down to determining how much money you will need to invest (read: make available funds grow) as well as how long it might take you to save enough, and set your mind and heart to it.