Make Financial Strength Your 2022 Resolution
For many, the start of a new year is the perfect time to reflect upon the events of the past and to create a plan for things to improve in the year ahead. From simple goals like spending more time with friends and family to more complex aspirations like going back to school or learning a new skill, resolutions can set the tone for a positive new year.
At Origin Bank, we encourage making positive changes to your finances part of your 2022 goals, and we have some tips to help you achieve success for strengthening your financial position.
- Start with one goal. Beyond paying off debt, determine one thing you can realistically accomplish over the next 12 months. A weekly or monthly savings goal? Getting your savings account above $5,000? Opening an IRA? Even relatively small goals make a difference, and the feeling of accomplishment is great motivation for taking another step.
- Prioritize your debts. List them in order of annual interest rate, starting with the highest. Generally, it’s best to focus on the top of the list and work your way down. The average credit card interest rate is usually considered to be just over 12 percent. If two or more debts carry higher rates, say, 15 percent or more, you might want to talk to an Origin expert about a more detailed plan for repayment. You can also utilize Origin’s personal financial management tool to help take more control over your finances.
- Start saving for retirement. When it comes to building financial independence, time is the biggest asset, so take advantage. An individual retirement account, or IRA, allows your wealth to build over time, and it offers important tax advantages. Origin’s financial planning experts can match you with the right kind of IRA and help determine a pace of saving that’s right for you.
- Close unused or unneeded accounts. Do you really need multiple credit cards? There may be exceptions, but the answer is usually no. Each card or account generates fees and interest, which is money you’re giving away. Having multiple accounts also increases the possibility of fraud and abuse.
Here’s a bonus tip that’s an easy, fun way to save. When paying with cash, round up to the nearest $5 amount. If you’re buying groceries, for example, and the bill comes to $36, pay $40. When you get home, toss the change in a container and forget about it. Some families have used this trick to save thousands of dollars over the year ‒ money that can put a serious dent in your debt, pay for a nice Christmas or fund a great family vacation.
Need more ideas or advice on something specific? Origin bankers are here to help.. When it comes to personal finances, we believe everyone deserves a chance to put their best foot forward.