Already a quarter into 2022 and hopping into spring so quickly, we want to take a moment to recognize April as Financial Literacy Month. This month is dedicated to raise public awareness about the importance of financial education in the U.S. and the consequences associated with a lack of understanding about personal finances.
After several years in a pandemic and continuing to deal with the aftermath on a daily or weekly basis, it can be difficult to manage the stress of these overarching world issues while simultaneously dealing with your daily life. Maybe you had to lightly or heavily dip into your savings the past years, have had job or home loss, or a multitude of other situations pop up that have made it difficult to focus on saving.
According to the American Psychological Association latest stress survey, it found that 72% of Americans reported feeling stressed about money at least some time in the prior month. Figuring out how to identify these triggers and how to overcome these monetary burdens is crucially important right now. The comforting news is that you are absolutely not alone! Money is a big stress point for most Americans. A study conducted by Laurel Road found that 58% of the responders are spending over 5 hours per week managing their personal finances due to the pandemic.
To celebrate financial literacy month and bring a positive light to an otherwise stressful topic, CKS Summit Group experts put together 5 tips for financial wellness.
Whether you realize it or not, we all actually have some type of financial belief that is more toxic than it is helpful. A few common ones are spending outside your means by using credit cards, believing that you don’t deserve financial wellness because of past financial decisions putting you in a vulnerable position, or the common misconception that you’re not capable of managing your money properly. Whatever those false beliefs are about your money, remove them completely from your self talk. 2022 is a new year and one that calls for positivity when it comes to finances and life in general.
If you haven’t done so already, setting up a budget is key to success so you’re aware exactly of where money is going. This might sound relatively easy to put together, but it can be very challenging to set a realistic budget and continuously sustain that budget without overspending. This ultimately will set you up for long term success when it comes to planning your retirement. When you need assistance on this, we invite you to reach out to our experts that will create a personalized retirement income plan for you.
One of the most well-known and repeated personal finance mantras is “pay yourself first.” No matter how much you owe in credit card debt, student loan debt, and no matter how low your salary seems, it’s wise to find some amount—any amount—of money in your budget to sock away in an emergency fund every month.
Having savings to use for emergencies seems like a waste in the short term, but long term will be a life saver. This can and will keep you out of trouble financially and help you sleep better at night. Also, if you get into the habit of saving money and treating savings as a monthly expense that is mandatory, you’ll have an emergency fund plus retirement money, vacation money, or even money for a down payment on a home before you know it.
It is important to nail down your financial goals. What does success look like to you when it comes to finances? Let 2022 be the year that you take time to hit the reset button and re-work your life goals. Understand if there are areas of focus and what steps are needed to get there. A good rule of thumb with goal setting is making SMART goals. Goals that are specific, measurable, attainable, relevant, and time–bound. Having SMART goals help you stay on track to make sure that your goals are realistic to set during this time.
Both financial issues and goals can be an overwhelming topic and seem unattainable to many people. Maybe that debt is hard to look past or any other financial burdens you may have. That is where CKS Summit Group and our trusted financial advisors are here to help you. It’s important to have people there to discuss your goals with to know what is realistic and to have a visual of your path to financial freedom.
Are you ready to start your path to financial freedom and take control of your finances? Contact us today, we can’t wait to hear from you and help you reach your goals.
