Delyanne Barros has a goal to reach a net worth of $1.5 million in 2022, something she never thought was possible when she had $150,000 in student debt in 2008.
“All my life I assumed that I would be working full-time until I was 65 years old,” she says. “Changing that narrative is like having a second chance at life.”
If you want 2022 to be a better year for your money, a New Year’s money resolution might be a good place to start.
New Year’s resolutions aren’t for everyone, and there’s a lot of space between being thousands of dollars in debt and growing your net worth to $1 million. But for some people, resolutions can be a way to kickstart a new year — especially when it comes to money.
If you’ve got a New Year’s money resolution in mind, you can help yourself by keeping your goals realistic — with specific numbers attached to them — and being compassionate with yourself if you fall off the horse at any point. Simply get back on, but maybe approach it differently, says financial therapist Carrie Rattle.
“It takes a little while to build self-awareness,” Rattle recently told NextAdvisor in an interview on how to stick to New Year’s money resolutions. “Go back to the triggers or the event that derailed you, or the size of your goals. Is it too much? You took your best guess, and now let’s try something new.”
In the final weeks of 2021, we asked 10 people to share their money resolutions for 2022. Here’s what they said, along with some tips you can apply in your own life.
Point of View: Personal finance expert and founder of the Money Coach
2022 Resolution: Reach FIRE (Financial Independence/Retire Early) goal of $1.5 million
How: Barros plans to achieve financial independence through her business and investments, which she says generated 7-figures in 2021. Barros says she’s diligent about not inflating her lifestyle too much and funneling most of her money toward her investment accounts, which are primarily comprised of index funds and ETFs.
What You Can Do: FIRE is a movement that encourages people to live below their means, so they have more money to invest toward early retirement or part-time work. Determining your own personal FIRE number is easy, and can be a instructive way to orient your investing goals.
Point of View: Money coach and founder of Money Boss Mama
2022 Resolution: Max out Roth IRA for the first time
How: King plans to increase her direct deposit to her Roth IRA by reducing some nonessential items in her budget and increasing her income through her money-coaching business and side hustles. “I am working on a new course that will increase my income and will continue side hustling throughout the year,” she says.
What You Can Do: A Roth IRA is a popular retirement savings tool that allows you to grow your wealth over time tax-free. Opening a Roth IRA can be done in just a few minutes, and is a great first step in many people’s investing journey.
Point of View: Personal finance expert and author
2022 Resolution: Continue to educate others on their financial language
How: Jackson wrote a book called “The 4 Financial Languages: The Secrets to Communicating About Money,” which focuses on figuring out which financial language you identify with the most to help you communicate with your partner when talking about money. She wants to continue to educate people on the topic because it “controls how you’re going to need to communicate about money, how you’re going to deal with money, how you’re going to leverage money, and even debt.”
What You Can Do: Your mindset and communication style both play big roles in how you manage your money. If you have a negative mindset around money, you can shift it to be more positive by doing a few things, such as changing your money script, having intentionality with your money, and figuring out the balance between self-worth and net-worth.
Point of View: Financial advisor and founder of Bone Fide Wealth
2022 Resolution: Not applicable (Boneparth says he’s “not a huge believer” in New Year’s resolutions
How: Boneparth isn’t a fan of New Year’s resolutions. He says you shouldn’t wait for a specific time in the year to begin pursuing a money goal or aspiration. Instead, you should pursue it when it makes the most sense for you and your financial goals, because “there’s never a bad time and it’s never a one-time thing,” he says. “I know it’s very different from what people are going to tell you, but I’m not a huge believer in New Year’s resolutions, especially when it comes to money. If this [New Year] is your calling, awesome. But also don’t forget this is something you continue to work on.”
What You Can Do: If you’re not big on New Year’s resolutions either, here are 40 smart money moves you can make right now or any time — from starting a passive income stream to having a money talk with your partner to buying an index fund.
Point of View: Writer at The Points Guy
2022 Resolution: Start paying off her student loan debt
How: Shon has been taking advantage of the federal student loan repayment pause over the last two years, but once it expires, she plans to start chipping away at her student loan debt. She says one challenge will be figuring out how to factor her upcoming loan payments into her current lifestyle, which involves a lot of travel. “I’m really trying to strategize, pay the lowest interest possible, and fit that into my everyday budget,” she says. “It’s not about paying them off immediately. It’s about figuring out a sustainable plan that fits into my whole lifestyle.”
What You Can Do: If you have federal student loans, you have a few months until repayment resumes. The pause on federal student loan payments has been extended until May 1, 2022. But there are a few things you can do now to prepare, such as updating your account information, rethinking your repayment strategy, and having a back-up plan if you can’t afford payments.
Point of View: Financial therapist and founder of Behavioral Cents
2022 Resolution: Shift her money mindset
How: Rattle wants to work on shifting her mindset around money, because her husband is thinking about retiring. She says they may start using some of their assets, which they’ve been saving for their entire lives, and she’ll have to adjust her mindset to accept not having as much income coming in. “It’s going to take work for me, because I grew up thinking money is security.”
What You Can Do: There are three things you can do right now to end up with the retirement you envision: starting saving, turn saving for retirement into a habit, and a set retirement savings goal.
Point of View: Personal finance expert and founder of popular Instagram account, Personal Finance Club
2022 Resolution: Find more opportunities to donate to charity
How: Schneider reached financial independence at 36, meaning he can live indefinitely without having to work for an income. Because he’s still young, he says he’d like to continue to grow his net worth through his investments so he can accomplish his goal of donating more to charity. “The end goal of money shouldn’t be to die with the most in your bank account; rather to maximize its utility while we’re still here,” he says. “In short, I think the point of life is to be happy and help people, so I’d like to do those things whenever I can.”
What You Can Do: An effective way to create change and uplift others is financially supporting nonprofits and companies that are making a difference. And you don’t have to look far — for example, you can support small businesses in your local economy or even donate your credit card rewards to your favorite charities.
Point of View: Financial advisor and founder of Mitlin Financial
2022 Resolution: Gain a better working knowledge of crypto, Blockchain, and NFTs
How: Sprung says he finds this area fascinating and wants to understand it better, especially since he’s receiving more questions from clients about it too. He plans to open an account with Coinbase and educate himself as much as he can by reading and speaking to people who have crypto expertise to learn from them.
What You Can Do: Crypto was a hot topic in 2021, and everyday investors are curious about how and if it can fit into their portfolio. But experts say you should resist the hype, and approach crypto with the same mindset you bring to your regular investment strategy. If you’re interesting in investing in cryptocurrency, start by asking yourself these four questions.
Point of View: Personal finance blogger and founder of Save My Cents
2022 Resolution: Sell her New York City home (without a seller’s agent to save on commission)
How: In 2022, Saavedra’s life will change drastically as she moves from New York City to Southern California with her family. “It will be a huge transition for our family of three,” she says. She plans to accomplish her 2022 goal by talking to others who have sold their own homes in the past to better understand the keys to success.
What You Can Do: Getting the best deal when selling a house is all about making your home stand out — while spending as little additional time and money as possible. If you’re trying to sell your home like Saavedra, there are several things you can do to optimize your strategy, such as timing your sale appropriately, setting the right price, and making essential repairs, among other things.
Mike and Brit Miller
Point of View: Personal finance YouTubers
2022 Resolution: Grow their net worth by 50%
How: The Millers want to grow their net worth as quickly as possible in 2022, because they want to become work optional. Their net worth doubled over the last 12 months, and they want to continue doing the same things they were doing in 2021 in 2022: Working, learning, investing, and trying to earn money in ways that aren’t dependent on their time. They currently have a few sources of passive income, including YouTube. Mike says how quickly they can grow their net worth in 2022 will largely depend on how the stock market performs. “We want to be an example that you don’t have to work 40 years to be able to retire,” he says.
What You Can Do: You can make money in your sleep, literally. It’s called passive income, which allows you to have the freedom to live and work anywhere and not rely on staying in one place to earn a paycheck. Here are seven ways to successfully earn passive income.