How do you improve your personal finances this year? Whatever the answer, you can always improve your relationship with money.

Do you want a new year free of debt and more tranquility in finances? With our tips, your 2022 will be different: throughout this post, we will share a step-by-step guide for you to organize yourself financially and get out of the pinch once and for all!

Ready to check? So take the pen and paper to write down each step you can take in 2022 to improve your personal finances.

1. Start controlling your consumption habits

Be honest with yourself and ask yourself what you’ve been buying lately. Are they things you really need? And even when not so necessary, are they things you actually use after you buy them?

We live in a world where consumerism is constantly stimulated by advertising and marketing. Therefore, it is necessary to have a lot of self-control and self-knowledge to not get carried away by these mechanisms.

Write down on your cell phone, so you never forget are two questions you should ask before any purchase:

• Do I really want this?
• Can I afford this?

If the answer is no to any of them, give up on the purchase!

2. Create an emergency fund and anticipate risks

One of the things that will make the most difference in your life will certainly be the emergency reserve. Having an amount of money equivalent to approximately six times your monthly expenses will guarantee you peace of mind to make better decisions.

With it, you will not need to take out loans if something unforeseen occurs, and you will save a lot by not paying interest.

Emergencies can undo all your actions to save money. The best way is to prepare for them. Although it is true that it is impossible to know what will happen, you can make a fund that is used when an emergency requires it.

3. Learn to use your credit card in your favor

Many people see the credit card as a major villain, but that’s not necessarily true. It can be a great ally too. It all depends on how you use it.

As well as interest, the credit card is also related to time and money. It lets you buy something now and pay later, right? So, if you don’t pay your bills on time, you will pay high interest for it.

It is also worth remembering that many credit cards like CIBC Aventura, Amex Air Miles, and Scotia Momentum have points and miles systems, which can also bring you benefits. But, of course, it all depends on your consumer profile. If you already have problems with debt, it’s best to avoid it.

4. Set tangible financial goals

Many people do not realize dreams because they don’t know how to turn them into goals. So how about writing down your financial desires for this and the next few years on paper and creating plans to fulfill them?

Here’s an example: suppose you desire to buy a house. The first step is to know how much that house cost in your preferred location and size you want.

Then, you must establish a monthly amount to buy the house in the period that you deem ideal and possible. That’s it; you’ve already turned your dream into a goal and divided it into smaller goals that are easier to achieve. (See also: How To Keep Your Financial New Year’s Resolutions).

In Conclusion

Being financially free implies improving your personal finances. However, I think the most difficult thing is to take the first step, then you just have to be constant, orderly and disciplined. 

Suppose you want to extrapolate all the advice to the professional world. In that case, you may be interested in MyMarble AI-powered software that guides and drives you toward a satisfying financial future.

MyMarble accurately finds the right path that fits the user’s lifestyle and empowers them to take charge of their financial habits using MyMarbles data-driven and personalized recommendations.