Episode 156: 2022 Financial Resolutions, Part 2
Today’s Prep:
What else can you do to get into good financial shape in the new year? We talk through three more financial resolutions you can make right now.
Equipping Points:
Continuing our conversation on financial resolutions for 2022, David shares three more financial resolutions you can make. If you haven’t heard the first part, go back and hear the first three financial steps you can make in the new year.
The fourth thing to be working on is to increase your retirement savings, starting with your check from work. Log into your 401(k) plan and increase it by one percent. If you’re under 50 years old, you can contribute $20,500 into your 401(k) per year, not counting the company match. If you’re over 50 years old, you can contribute $27,000 this year.
What if you don’t have a retirement account through work? You can get an IRA at a brokerage like Fidelity, Schwab, or TD Ameritrade and set up an automatic withdrawal from your checking account. Make sure you contribute on a regular basis so you don’t get to the end of the year and have too big of a hill to climb.
Your minimum goal should be to save 10 percent of what you’re making all of your life. David shares what this can look like when you start at age 35 vs. 45 years old. The longer you have this money working for you, the better. Without making yourself feel totally deprived, save for your retired life as soon as you can.
Finally, protect your family from catastrophic risks or, cover your assets. Without this, your plan could come tumbling down if something were to go awry. David recommends buying term life insurance and invest the difference instead of buying permanent insurance. Find out how much you need based on your financial picture and evaluate it as your net worth goes up. Disability insurance is also important coverage to have and statistically more likely to be needed.
All of these things will help you feel more confident and financially secure in 2022. Reach out to David if you have any questions or need guidance on your financial plan. Next week we’ll answer some of the questions received regarding these financial resolutions.
Listen to the full episode or skip around to certain topics.
0:59 - Increase your retirement savings.
4:52 - Save as much as you can, as early as you can.
9:25 - Protect your family from catastrophic risks.
Today’s Takeaway:
“Whatever it is in your world, set that aside methodically, automatically for as long as you can, and that’s what’s going to get you and your net worth statement to something that meets or exceeds your expectations."
– David Dickens
KC Financial Advisors Blog


