What does the future hold for personal finances? The financial landscape is changing all the time, but these changes will see our pockets feel the pinch, and some of us could be battling to stay afloat.
Trying to forecast the financial future is hard, but we can make some educated guesses, based on what’s happening right now. With that in mind, here are six ways your finances could change in 2022.
Tips to Better Your Finances this Year
1. Watch your credit score
Your credit score shows key factors such as how long it has been since you used certain cards, how many cards you have, and if you’ve missed payments on any of them. The better your score, the more lenders will trust you and the better rates they will offer you for loans and other financial products. Keeping track of your credit score and knowing where you stand is the first step to staying in control.
2. Leverage budgeting apps.
Budgets are great tools for keeping tabs on spending and saving, but they don’t have to be just pen-and-paper affairs. There are plenty of budgeting apps out there that can help you manage your money better.
These apps aren’t just for people who find it difficult to stick to a budget; they’re also great tools for anyone who wants to take control of their personal finances in the new year.
3. Rethink your insurance strategy (compare deals).
Ask yourself whether all of your insurance policies are still necessary. If you aren’t using certain policies anymore, cancel them to free up some cash for other priorities. Be sure to shop around for updated deals when you renew these policies, as premiums can change significantly over time
4. Spend with the right card
From a personal finance perspective, that means using your credit card for day-to-day expenses and using cash for big-ticket items. By setting up automatic payments from your bank account to meet the minimum monthly payment on your credit card, you’ll ensure you can pay off your balance in full each month — and avoid interest charges (and any additional debt).
5. Consider life cover
If you’re under 30, now’s the time to start thinking about life insurance. The younger you are when you buy it, the less expensive it will be. But don’t wait too long; the cost of buying coverage later in life can cost three times as much as buying it when you’re young and healthy. Consider life cover if you have dependents who rely on you financially or have debts that need to be paid off.