The Ultimate Financial Checklist For 2022


A New Year is a perfect opportunity to take a closer look at your finances and figure out what steps you should take to move even closer to achieving your financial goals. Many of us make New Year's resolutions around this time of year, particularly related to health and career goals, but financial goals shouldn't be excluded from the list. Knowing how to position your financial goals is a task in and of itself, but there are a few areas that you should focus on as we head into 2022.

With that in mind, here is our Ultimate Financial Checklist For 2022:

1. Top off your emergency fund

You should aim to save for 6 months of expenses with no income in your emergency fund. Don't let inflation eat away at it though - make sure it is invested appropriately in safer, easy-to-access assets.

2. Pay off your credit card balances

Credit Card balances are typically the most expensive debt form of debt - often 2-10 times as expensive as a mortgage. Pay off anything that you can prioritising the highest interest cards and consider consolidating the remainder with a lower cost personal loan.

3. Take stock of your pension

How is your future retirement looking? The end of a year is a good time to review your pension. Are you on track to meet your retirement goals? Could you increase your monthly contributions? Is there anything you can do to improve your situation?

4. Revisit your 2021 investment goals

How did you do with meeting your investment goals for 2021? If you are on track, you can give yourself a pat on the back. If not, what needs to change to get you where you need to be in 2022? Perhaps you need to look at your asset allocation and rebalance your portfolio? Could you convert some cash savings into investments which produce a higher return? Or select a more appropriate wrapper to reduce your tax liability? Talk to us about your options.

5. Reduce your expenses

Income - expenses = savings. It seems straightforward enough, but our expenses have a tendency to creep up to match our income. See if there are opportunities for you to rein that tendency in.

6. Rebalance your investments

Maintaining the right mix of stocks, bonds, and other securities in your investment portfolios requires attention as markets move up and down. Rebalance your investments to get back to your goal state in each account.

7. Check your beneficiaries

Have you experienced any big life events this year? Births, marriages, divorce, death? These may require you to revisit your will, life insurance policy and/or pension in order to change the beneficiaries. This task is easily forgotten in the maelstrom of everyday life so making a concerted effort to take stock every December is a good idea.

8. Save for big purchases

If you are planning on making a big purchase like a house in the near-term, make sure you are putting those savings in an account with a plan designed to achieve your goal in the timeframe you want.

9. Pre-empt your 2022 tax bill

In many countries the end of a calendar year also means the end of another tax year. December could be your last chance to reduce your tax liability by topping up pension contributions to max out allowances, making charitable donations or gifting money to loved ones. If you run your own business, you may be able to delay invoicing or make capital investments to mitigate taxes. Talk to us for up-to-date advice relevant to your situation.

10. New year, new financial adviser?

Are you happy with the advice you have been getting? If not, 2022 could be the year to ring in some changes and find a new adviser who is more in tune with your needs:

11. Protect your wealth

Often wealth protection takes a back seat to wealth creation within an individual's financial plan but it is equally important. Health insurance is a key element of wealth protection so check if you have a policy which is fit for purpose for all the family. Ditto for life insurance. You might also want to think about income protection to have rock solid protection against all eventualities.

12. Set goals for 2022

Concrete, target-led goals are the way forward if you want to make sure that you are in a stronger financial position this time next year. What are your financial goals for 2022? Think about areas such as paying off debt, setting savings target, estate planning, education fee planning etc.

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 advisory provides 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, expatwealthatwork helps you pinpoint the optimal investment vehicles that serve your financial interest. We provide performance 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 expatwealthatwork, you can be assured you are getting investment advice from a firm that has the obligation to disclose conflicts of interest and put your interests ahead of its own. 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.

We hope the New Year brings you good health, much happiness, and plenty of prosperity!