Prepare Your Finances for 2022 With This Checklist

Prepare Your Finances for 2022 With This Checklist

29 Nov 2021

The new year presents a golden opportunity to prepare your finances and set the stage for a successful segue into 2022 and beyond.  However, if you are like most people, you might not be exactly sure where to start when it comes to preparing your personal finances for the new year.  

Our CERTIFIED FINANCIAL PLANNER™ Professionals in Canton, OH are here to help you get off to a financially sound start to the new year.

Start by Analyzing Your Spending in ‘21

Though reviewing how you spent money in the year coming to a close has the potential to be somewhat depressing, it is a necessary evil.  Take a close look at how you used your earnings and savings and you will be able to highlight areas where you overspent.  


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Recapping your spending in ’21 is that much easier when you categorize how the money was spent.  Zero in on spending patterns, alter your spending accordingly for the year ahead and you will be able to set yourself up to succeed in investing and saving that much more of your discretionary income.  This review might even reveal that you underspent in certain areas, creating an opportunity to rebalance your spending moving forward.  

Above all, prioritize areas to pare back spending in the year ahead so you can spend in a manner that aligns with your personal financial goals.  Don’t forget to hone in on those often-overlooked subscription services.  When it comes to subscriptions, people tend to “set it and forget it.”  Analyze whether the subscriptions you pay for are worth the money, adjust accordingly and you’ll segue to the new year without spending a penny more than absolutely necessary.

Review Your Financial Contributions to IRAs, 401(k)s and Other Investment Accounts

The beginning of a new year is an opportunity to analyze your retirement contributions.  From IRAs to 401(k) accounts to pensions and beyond, take a look at how your money for retirement was allocated in the year gone by.  If your employer offers a matching contribution to a 401(k), take full advantage of the opportunity.  

Ideally, you will max out your contribution to such an account, up to the level that your employer matches.  However, even if you only slightly increase your contribution to your retirement account, you will make meaningful progress toward reaching your retirement goal.

Emphasize Financial Simplicity for a Lucrative 2022

The analysis detailed above has the potential to weigh down your mind and make the transition to the new year somewhat stressful.  Maintaining a budget, making retirement account contributions, and analyzing spending across the entirety of a year are inherently complex challenges.  Make a conscious effort to shift toward financial simplicity and you won’t feel nearly as mentally bogged down moving forward.  

Consider using an app that shifts budgeting from pen and paper to the digital realm.  A budgeting app is also that much more efficient than Microsoft Excel spreadsheets.  However, if you use too many apps and tools, there is the potential to become overwhelmed with an abundance of information.  

Review each of these tools and apps, removing those that you rarely use or no longer use.  The end result will be a simplification and streamlining of your personal finances that will make 2022 comparably easy in the context of money management and organization.

Perform a Net Worth Update

Think back to the last time you updated your net worth statement.  If it has been more than a year, seize the opportunity to update it during the transition to the new year.  This statement serves as a snapshot of your overarching financial picture, encompassing assets as well as liabilities.  

Subtract liabilities from assets and the resulting figure is your net worth.  This number is the culmination of your financial decisions in the past year and also in the years and decades preceding 2021.  If this figure is less than anticipated, it is time to make some changes.  Alternatively, if your net worth is as expected, it is an indication that you are progressing toward your financial goals.

Review and Rebalance Your Investment Portfolios

If you are like most people, you don’t know the expense ratios of your mutual funds or the weighted average costs of the funds in your portfolio.  Figure out these investment expenses and review them accordingly.  If you are paying more than you believe is fair or unsure as to whether the investment expenses are reasonable, you may want to consider leaning on a financial advisor in Canton, Ohio for guidance.  

The CERTIFIED FINANCIAL PLANNER™ Professionals at McGervey Wealth Management are here to help you strategically implement investment management techniques designed and created especially for you.

Revisit Your Retirement Plan

Whether you are in your 30s, 40s, 50s or 60s, the start of the new year is an opportunity to revisit your retirement plan.  Perform an honest assessment of your financial progress toward your retirement goal.  

Even if your target retirement date is years or decades away, reviewing your progress toward this goal during the transition to a new year will give you a better sense of whether you are making significant headway or spinning your wheels.  If you aren’t happy with your progress toward your retirement goal or are unsure as to whether your progress is sufficient, it may make sense to reach out to a financial advisor for advice and guidance.

Meet With an Investment Advisor in Canton, Ohio

If you are curious about how to choose a fiduciary to manage your hard-earned money or unsure as to why relying on a fiduciary is so important, don’t be afraid to ask for help.  Our fiduciary financial advisors provide comprehensive financial planning, retirement planning, and estate planning without any conflict of interest.  

Instead of attempting to upsell financial products to make money through commissions, our financial advisors help you pinpoint the optimal investment vehicles that serve your financial interest.  We provide fee-only wealth management strategies highlighted by a duty of care that safeguards your hard-earned money, paving a path toward a comfortable retirement.  

By working with a fiduciary like McGervey Wealth Management, you can be assured you’re getting investment advice from a firm that has the obligation to disclose conflicts of interest and put your interests ahead of its own. 

At McGervey Wealth Management, we get to know you on a personal level and keep things simple, using common language everyone can understand. To learn more about ways you can start 2022 off on the right financial foot contact us today.

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More About the Author: E. Michael McGervey, CFP®, CRPC®

Mike is passionate and skilled at helping clients solve complex financial challenges. He’s known for his thoughtful communication, educational approach, and exceptional customized service. Mike has been a sought-after source for financial television, magazines, and newspapers looking for insightful analysis. His expertise has been featured by CNBC, FOX Business and...