Focusing on your financial goals for 2022

IT’S that time of year again when people are thinking about the customary new year’s resolutions, assessing what aspects of their lives they want to improve over the next twelve months, and determining the steps they need to take to achieve their goals. For many people, financial goals are often at the top of their list of resolutions, but unfortunately, more often than not, some of these goals get forgotten by the time the first paycheque hits your bank account in January.

Clinton Hunter, Assistant Vice President, Retail Banking, Sagicor Bank Jamaica, advises that when setting your financial goals and new year’s resolutions, instead of setting generic financial goals for the year, you should take a step back and assess exactly what it is you want to achieve and make ‘smart’ goals that are specific, measurable, achievable, realistic and time bound.

“It is important that you look at your current situation and determine what is feasible to achieve in the near future and break down your goals in stages. You want to also continuously assess your finances as your circumstances change, whether it be a new job, promotion, a major life event change such as getting married or having a child,” Hunter said.

Hunter added that it is also crucial that people not only look at financial goals just for themselves, but to also consider how their decisions impact their family and loved ones, especially if they have dependents.

A career banker, Hunter shares the below considerations to add to your resolution list:

Home ownership

Home ownership is an investment in your family’s peace of mind and financial security. The sooner you begin the process to home ownership, the better it is, and the more time you will have to repay. “Now is the best time to go house hunting and begin the process to ownership, as there are many new housing developments and great deals to make it easier and more affordable,” Hunter says.

Budgeting and saving more

Hunter recommends reviewing your 2021 statements to assess your spending patterns, then setting a practical saving goal for each source of income. He also recommends encouraging your younger family members to begin the habit of saving as early as possible.

Improve your credit

Loans are a healthy part of most people’s financial journey, but if not managed carefully, they can go into arrears, which spells trouble for your credit score. Hunter recommends writing down all outstanding payments you have and planning to clear them as quickly as possible to improve your credit.

“You might want to consider debt consolidation, or having a loan refinanced at an interest rate that you are more comfortable with,” Hunter advises. “You can also consider getting a credit card for the new year, which allows you to access funds up to a certain limit, then pay later. This can also improve your credit rating over time, and earn you rewards once payments are made on time.”

Start investing

Investing is a great way to earn additional income, Hunter shares. “The investment options are wide and varied; you can choose to invest in the stock market, or in unit trusts, or you can choose to make an investment in yourself by starting a business.”

Hunter recommends that for the new year, you can begin to work on your business plan, which will help you to assess how much capital you will need to get it off the ground.