Prices are skyrocketing and the word "inflation" is being tossed around freely and regularly.
With such grim economic news, it can be difficult to navigate 2022 as planned, especially if you're looking to make up for the past two pandemic-filled years. Even though the cost of living is high and we're feeling the weight of the situation, these expert-backed financial wellness tips will keep you in good shape.
Allow Makala Green, author of The Money Edit and Britain’s first Black and female chartered financial planner, and Michael Throckmorton, business success manager and data protection officer at mCash Advance, to make things seem a little less daunting.
"You are the author of your financial journey, and the right mindset makes a huge difference," Green says.
Ready to dive in?
Award-winning financial expert and author of The Money Edit, Makala Green is all about making wealth simple. She's represented noteworthy companies such as Waitrose, French Connection and Marks & Spencer, and offers coaching, one-on-one planning and more.
Financial tips for 2022's money challenges:
There's nothing here that you cannot handle—try one of Green or Throckmorton's tips at a time and watch your financial situation evolve.
1. Get help
There's no shame in asking for assistance, whether it's through books, personal finance podcasts or money-saving apps.
"Ideally, you want a financial app that allows free access to get a feel for how effective it is in helping you manage your money," Green says.
Her selections are as follows. Browse around before committing to the one that works best for you.
- Emma (free standard option)
- Monese (free simple option)
- Money Dashboard (free access)
- Revolut (free access)
- Moneyhub (free trial period for 6 months)
2. Start a diary
Consider this the best excuse to buy a cute notebook.
"Creating a financial journal will help you to make realistic goals based on your weekly and monthly expenditures," says Throckmorton. "Journaling provides great strategies to help gain control over your spending and ensures you are honest with yourself about the money going in and out of your accounts."
If you're planning ahead—perhaps for a big trip or a downpayment—a finance journal will help you map out road to reaching your goals.
Michael Throckmorton, business success manager and data protection officer at mCash Advance, a financial portal for small business financing in the US.
3. Get rid of debt
Sure, easier said than done, but once you've squared away any large balances, you'll be able to focus on the future and what you want to attain.
"It's important to pay off any outstanding debt before putting money into savings," Throckmorton advises.
4. Consider investing
"Investing" sounds like a heavy word—something only people with generous bank accounts can afford to try. This isn't the case, though.
"Saving and investing may seem like a challenge at first, but putting even a few dollars into an investment opportunity could have a big impact," Throckmorton insists. "Before investing, ensure you do your research before so you completely understand the process."
5. Cut overspending
Okay, okay, we know you only meant to spend $40 on dinner, but one Aperol spritz turned into two, and dessert was too tempting to pass up. Rather than spend now and worry later, small steps can help keep your credit card transactions under control.
"Try setting up spending alerts and trackers to keep you in check," Green suggests.
6. Declutter your subscriptions
Like you do your social feeds, peruse your subscriptions, bills and so on to see what you can eliminate. If you don't truly need six streaming services, why not cut back to five?
"It's a great time to evaluate your spending to see where your spending habits are," Green says of 2022. "You will likely find payments for goods or services you have forgotten about or no longer use."
7. Compare and contrast
Why settle for the first offer? Pick and choose which services are not only better for you personally, but for your wallet.
"Shopping around for a better deal is the best way to try and hundreds of pounds," Green says. "Comparison websites such as Money Supermarket and Compare.com make it easy to find the best deals."
8. Pick a credit card wisely
"You could consider switching it all to a credit card with a 0% interest credit card for a set period to allow you to clear your debt quicker without paying over the odds," Green says.
9. Start a side hustle
For more income, why not try putting that passion project to the test?
"You can earn extra cash from various avenues such as online surveys, renting out space, tutoring, asking for a raise, investing or selling unwanted items in your home," Green says.
However, there's one big rule to follow: "The trick is to ideally fit your side hustle comfortably into your daily life."
10. Set up an emergency fund
If you need to dip into another pool, you'll be grateful to know it's there.
"Firstly, you want to determine how much you want to save," Green says of emergency funds. "Ideally, three to six months of your income is a good guide. Then save regularly until you have achieved your target."
