Many people make terrible decisions with money, but that doesn't have to be you! Here are good financial goals for you to work toward.

Every year, a lot of people set personal goals around improving their finances.

Does this sound familiar to you? Are you part of the 73 percent of Americans who say finances are their number one stressor?

If you want to get better with money in 2022, start by setting clear financial goals. Listed below are some good financial goals for you to work toward this year.

1. Start an Emergency Fund

Do you have any money set aside to help you through an emergency? A lot of Americans don’t, and then they end up in serious debt when something goes wrong.

If you don’t have an emergency fund yet, make 2022 the year that you build one. Set a savings goal that’s simple and realistic. Even if you can only save an extra $50 or $100 per month, that’s a great starting point. 

2. Pay Off Debt

Whether it’s credit card debt, a car loan, or any other type of debt, the sooner you can pay it off, the better. Carrying around debt will affect your credit score and cause you to pay tons of extra money in fees and interest.

Take stock of all the debt you have, then make a plan to pay it off month by month. If you’re not sure where to begin, consider working with a debt reconciliation professional who can formulate a plan for you.

3. Improve Your Credit Score

Paying off debt is a great first step toward improving your credit score. There are other ways to give it a boost this year, though, including the following:

  • Reduce your credit utilization ratio (the amount you charge compared to your available credit)
  • Stop applying for new loans or credit cars
  • Evaluate your credit report and correct any errors that might be affecting your score

All of these steps, combined with reducing debt, will help you get your credit score to a better place in no time.

4. Set Up a Retirement Fund

Building an emergency fund will help you to establish financial freedom now. Setting up and contributing to a retirement fund will help you enjoy financial freedom in the future.

If you don’t already have a 401(k) or another type of retirement fund, 2022 is a good year to create one and make a plan to contribute to it each month.

5. Start Investing

For those who are interested in building more wealth and planning for the future, investing in the stock market, real estate, or cryptocurrencies may be a good option. Partnering with someone who specializes in financial advisor coaching will help you to learn the basics of this type of investing and set you up for long-term success.

Set Some Good Financial Goals Today

If you’re looking to set good financial goals this year, these 5 are all excellent ones to consider. Achieving any of them will provide you with a great sense of accomplishment and help you get closer to your lifelong ambitions.

Do you need more help with personal finance or money management? If so, we have lots of financial resources available on our site. check them out today.