1. Update your personal financial statement
A personal financial snapshot is simply a snapshot of your entire financial position at a specific point in time. The end of the year is a top time to update your personal financial statement. Updating your personal financial statement as of 12/31/2021 will help you see your total net worth for the end of last year. You can see how much cash, investment, and debt you have. We recommend updating your personal financial statement before you set your goals for 2022. If you have already set goals for 2022, use a personal financial statement to see if you need to alter any of your financial goals. We also recommend updating your personal financial statement 3-4 times a year.
2. Update your budget for 2022
Did you know that most Americans keep some form of a budget? 58% of people feel comfortable updating and completing their budget, and 40% of people keep up with a budget every month (Source: Clutch).
Everyone’s financial snapshot is different and unique. Everyone keeps track of their budget in a different and unique way. The most important thing is that you are keeping track of your budget. A great way to get your budget right for 2022 is to set your annual budget for 2022 and your budget for the month of January. This will help you anticipate how much money you are going to make, invest, and spend for the year. Get a routine that is right for you! If you are used to updating your budget every month, then keep doing that. If you have never updated your budget, don’t go overboard and do too much too fast. Just start somewhere!
Don’t know where to start? Not satisfied with your current budgeting process? My Financial Snapshot has you covered. We recently released a 2022 Budgeting Tool to give our subscribers an easy-to-use tool to help them keep up with their budget this year. Whether you are a budgeting wizard or new to keeping up with your budget, this tool can be used by anyone.
3. Set goals for 2022!
As mentioned before, everyone’s financial snapshot is different and unique. Updating your personal financial statement then your budget before you set any goals is key to making sure your goals can be achieved. We suggest using the SMART goals thought process to help you get started for your 2022 personal financial goals.
4. Keep track of your goals throughout 2022
You have updated your personal financial statement. You have updated your 2022 budget. You have set SMART goals. Now it is time to keep track of your goals as the year goes on. We recommend repeating steps 1-3 as needed through the year to make sure you are setting yourself up for success. We suggest subscribing to My Financial Snapshot for access to the best tools to update your personal financial statement and budget. You can try our website for free for 30 days!