As 2022 approaches, we look forward to having a better global situation, and look back and realise that we made it through another year despite all its up and downs. It was a whole year living through a pandemic, however, with caution and constant checks we made it through.
To get ready for 2022, we compiled a list of financial checks one should perform during the end of the year to start the new one in check.
If these are done properly, we can start a successful year with a healthy financial plan.
- Take a moment to calculate your net worth. It’s no biggie, you can do this on a simple spreadsheet, or even on the back of left-over wrapping paper. Check your assets, things like your house, cars, your retirement savings, current cash flow and then deduct any debt, including your home loan, motor loans or any other personal loans, if any. That’s how you can see your net worth. Following this, you can get a clear view of what your situation is like at the end of the year. You might also be in for some surprises after a strong year for growth assets, with booming real estate and your investment portfolio excelling.
- Once you calculated your net worth, think ahead, and list down your goals. Sit back and think about those objectives that you want to achieve in 2022. First and foremost, see what your priorities are and act on them.
- Before you step ahead, look back and have a look at your spending habits in the past year. How did you manage your hard-earned money in 2021? How much are you saving from your income? Have a look at your financial commitments, the monthly and annual ones. Do they make sense when compared to your earnings? Check out your savings and see if you can make better use of them. Look into your spending habits and see if you can cut down on some. It can start from reducing the amount of eating out, excessive partying or an expensive bad habit that is costing you not just your money, but also your health.
- Also, have a look at your income needs and any other financial requirements. Are you satisfied with the number of withdrawals you carried out during 2021? Have you been comfortable doing these? Or were you anxious? Think ahead and see if you will have any lumpsums that you will need in coming years.
- Any goals in 2022? Have a think about your goals for the upcoming year. What are your new financial priorities as we enter 2022?
- Debt is the biggest headache for some. Scrutinise your debt commitments and see if you can create any advanced repayment schedules or if there are any loans that you can get rid of.
- And for those investing, what is your risk tolerance now that we are approaching the end of the year? Did 2021 make your more concerned or less nervous about markets? See if you want to remove some risks or if you feel like you should take more risks. Our team at MeDirect can offer you personalized and professional advice on all the goals that you want to achieve.
- Were you in a hurry when you were insuring your assets? Did you just do it with the first insurance company that replied to your email? Have a look at your insurances and see if you should go for a different provider to save on more money annually.
- Let’s be honest! Taxes are quite a nightmare, aren’t they? But they are surely here to stay. Did you plan for them? Do you have any upcoming taxes that you’d like to provision for?
- Finally, have a look at your financial emotions during the past year. Did you feel comfortable and progressive? Or were you worrisome and anxious about your financial future? Do you want to educate yourself more when it comes to financial education? At MeDirect we can offer you ample advice for those insecure weeks or months ahead.
Our team at MeDirect Bank wishes you a great start to the new year, wishing you a healthy year both physically and financially and do not hesitate to contact us for more financial tips.
MeDirect Bank (Malta) plc, company registration number C34125, is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371) and investment services under the Investment Services Act (Cap. 370). MeDirect Bank (Malta) plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994.