This is my first post of the new year. 2021 was good to me, but I know that it was a struggle for others. I have been fortunate to have been working throughout the past year and for the duration of the pandemic. I have my debts paid off and have been consistently saving and investing money. Expenses have been kept low, and financial responsibility has taken precedence over luxury items and frivolous spending. The plan for 2022 is to keep on this same path.
New Year, Same Goals
As we enter a new year, I am keeping on the same path that I have been for the past several years. Steady investing, saving, increasing income, and keeping expenses low. There is no genius to this formula. I will say that it is difficult to get to this point if you are drowning in debt and struggling to make a living wage. But if you manage to climb out from that situation, then everything goes on autopilot and sort of takes care of itself.
I have been fortunate that I’ve always been a saver and never really racked up huge amounts of debt, but I was what Dave Ramsey referred to as “normal.” I had student loans, a car loan, and a small credit card balance. A few years ago, I made it a priority to pay everything off except the mortgage then to restart investing. Luckily, I had room in my budget to do so. Since paying off everything I have increased my savings and investing rates. I’m keeping these up for the new year.
Old Habits Broken
How did I end up being “normal”? It’s hard to say exactly, but some of it was listening to my family who said that I must go to college and take on debt in the process. Some of it was my own impatience. Why save and wait when you can make easy monthly payments? The rest is probably growing up around people who had the wrong mindset about money.
I changed my mindset sometime ago, and I can tell you that I’ll never go back to my old ways of thinking about money. I wish I could offer up some magic formula to get you on the right path, but there really isn’t one. My current situation is a result of years of self-education, talking with successful people, trial and error, and a mindset shift of wanting to build wealth.
The best advice that I can give you is to simply do the work. If you really want out of debt and to start building wealth, then you need to attack it from all angles. Learn as much as you can, find a mentor, learn new skills, increase income, get on a written budget, and find a motivating factor or goal so you stay on track.
Looking Ahead
The new year is a new opportunity to turn your finances around and to start making money work for you instead of the other way around. If you want to turn things around, then share your story below. May the new year be prosperous and fulfilling!
Read Also:
7 Tips to Help You Cut Down Your Debt
Check This Out: The Different Ways to Consolidate High-Interest Debts
How Understanding the Rule of 72 Works Can Build You Wealth
Building Wealth Is Easier Than You Think
Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
