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With 2022 underway, we’ve taken some time to set our top 5 financial goals for 2022 with our plan to achieve them. We hope our goals and plans can provide you with some inspiration as you work towards a life filled with joy and financial peace.
Table of Contents
Our Top 5 Financial Goals For 2022:
- Read 3 finance books.
- Emergency fund hit $15,000.
- Total investment accounts hit $93,000.
- Total net worth hit $430,000.
- Under contract for another house.
How We Plan to Achieve Each Goal
1. Stay focused on our WHY
Sometimes it can be hard to see other people buy a nice car or go on a trip to a fun place, buy a lot of great gifts for Christmas, etc., and you want it too!
So here’s our why that we need to remember when times get tough –
Both my wife and I’s financial goal is to hit FIRE (finance independence retire early) one day. We don’t want to be stuck with 9 to 5 jobs until we are 50, 60, or even 70. We truly hope we can retire early to be able to spend a lot of time with family and be free.
Try thinking about andwriting downyour financial goals for the next year, and for the next 2, 3, 5, or 10 years to come.
Writing down and remembering those goals is crucial because it gives you an empowered mindset and can help a lot when feeling overwhelmed.
When things get tough, remember the pain is not going to last forever, it is temporary.
Short-term pain brings long-term happiness, I think this type of sacrifice is very worthwhile.
For example, my wife said that when she looks back she has forgotten how painful delivering a baby was. She just remembers how cute the baby is and how grateful to have our lovely children now.
Having a baby is much harder but the point is things that are worth it in life don’t come easy.
Set meaningful goals and work hard to achieve them. This is vital to finding success and is also a driving force that will support you.
2. Save and budget
“Don’t save what is left after spending; spend what is left after saving.”
Warren Buffett
For our Emergency Fund, we have an automatic transfer every month of $400 which should help us reach the goal of $15,000 by year-end.
As for our investment accounts, we have just maxed out our Roth IRA contribution amount for 2022. For more on this see Our Top 2022 Investments.
Imagine two people, someone who makes $100,000 a year and spends all of it. Then someone who makes $50,000 a year but only spends $30,000 and invests $20,000.
Which one do you feel is on the path to financial freedom and building net worth?
High income does NOT equal wealth. Knowing how to save, budget, and invest wisely are skills of the wealthy. Learning takes time and commitment, we are still learning new things and doing our best to save and budget.
One way we like to save money is by using an affordable phone plan.
Mint Mobile has helped us save tons of money, especially during college! We all know how phone plans can get pricy with long, frustrating contracts.
Our friends told us about Mint Mobile many years ago. For many reasons, we are still using them today!
Mint Mobile offers amazing plans at incredible prices, with plans as low as only $15 a month! My wife and I pay only $15 monthly for our phone plans. Check out how you can save money with them today!
Related content:How We Save 56% of Our Income [Family of 3]
Related content:How We Budget Our $100K Income As A Family of Three
3. Accept failures as valuable lessons
Life is a journey of learning lessons, and we have learned this first hand. We learned the importance of learning quickly from mistakes and facing life optimistically.
We have made mistakes when first becoming new landlords or finding out we had a collections account.
The mistakes we made were very tough at the time but we need to accept our failures as valuable lessons and do our best to avoid them in the future.
Although hard at that moment, when you look back a long time later you might be thankful for those failures.
Failing is not terrible, what is really terrible is that you have not learned from the experiences.
“We need to accept that we won’t always make the right decisions, that we’ll screw up royally sometimes – understanding that failure is not the opposite of success, it’s part of success.”
Arianna Huffington
4. Be patient
The road to financial freedom requires patience and persistence.
My wife and I would also be envious when we see people who get rich overnight. Especially recently with the hot topic of cryptocurrency, many people benefited from it but many did not.
But neither of us likes to gamble. Gambling can become a scary addiction.
Someone with a lot of extra money could invest in these things but must be willing to lose it all.
We need steady investments because we have kids and families need to take care of.
When it comes to funds, we love the Total Market Fund and S&P 500 fund. If you don’t know what to invest in, they both can be a good starting point!
Compound interest is the most wonderful thing in the world, but it takes time and requires patience.
The main point is to start investing early and start now, you will see how miraculous it is and how it grows like crazy over time!
90% of our stock market investments are in a regular mutual fund, index fund, or ETF. 9% of our investments are in single stocks. Less than 1% is in cryptocurrency.
My wife and I want to be financially free ASAP too, but we keep telling ourselves to be patient.
So hopefully our plan to achieve our 2022 financial goals can be of use to you –
- Remember your why
- Save and budget
- Accept failures as lessons
- Be patient
Thank you so much for reading! We would love to hear your thoughts or questions – drop a comment below!
