Money expert: Here's how to keep those 2022 financial resolutions

·2 min read

There are three key steps to take to ensure your financial resolutions in the new year stick, according to one financial expert. And the first step isn’t about money.

“Make sure you check in with your current values, beliefs, non-financial goals before you even get started with your financial goals,” Tiffany Grant, a financial wellness facilitator, recently told Yahoo Finance Live (video above).

Remaining focused on your core values will help you stay committed to your goals, she added.

The next step is to prioritize your financial goals. For instance, if you want to reach certain financial objectives in a few months while others in a few years, order those goals by their timeline and break down long-term “stretch goals” to more manageable accomplishments.

“Start making a hierarchy of those goals,” Grant said. “If you have a goal to be debt-free, let’s say, and it’s $50,000, that sounds like a lot. But if you break it down into, maybe a thousand here, a thousand there, you look up and you’re done.”

NEW YORK, NEW YORK - JANUARY 01: A girl blows a noisemaker and celebrates New Year’s Eve in Times Square on January 01, 2022 in New York City. Despite a surge in COVID-19 cases New Year’s Eve happened as planed but with only 15,000 vaccinated participants allowed, who were also required to be masked at all times. In an effort to increase safety, people were initially only allowed in beginning at 3 p.m. on the day of, but were let in earlier. People will also be spread out in socially-distanced pens. Last year’s celebration allowed no spectators due to the coronavirus pandemic. (Photo by Alexi Rosenfeld/ Getty Images)
A girl blows a noisemaker and celebrates New Year’s Eve in Times Square on January 01, 2022 in New York City. (Photo by Alexi Rosenfeld/ Getty Images)

Last, do your research before trying to reach your financial targets, Grant said. For example, If you want to buy a house, ask yourself specific questions about homeownership first.

“What kind of house? How much is that house going to cost? What down payment do you need?” Grant said.

When working toward your financial goals, don’t get overwhelmed by the facts and figures and be prepared for stumbling blocks on the road to your financial success.

“You want to make sure that you’re setting yourself up for success,” Grant said. “Even if there are obstacles that could potentially get in your way, you want to make sure that you pre-planned for those things.”

Money affirmations — like “telling yourself you can do this,” Grant said — can also help you create the mental attitude to meet your goals. Small savings challenges can also help you stay focused.

For instance, pick a number between 1 and 100, Grant said, and save that amount on a daily, weekly, or monthly basis.

“Put that money in an envelope, in a separate savings account, wherever you need to put it so you don’t touch it, and then cross it off the list and you can’t use that number again,” Grant said. “It’s just an easy way to baby-step getting your savings together and making sure that you hit those savings goals.”

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Ella is the personal finance reporter for Yahoo Finance. Follow her on Twitter @bookgirlchicago.

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