Happy 2022!
It’s a new year, and we often set goals as New Year’s resolutions. But you may not feel like setting goals or celebrating this year. The COVID-19 pandemic has killed far too many, and families are stressed.
Although many people have been traumatized by the pandemic, we are hopeful we can get back to “normal” during 2022. But, with the virus spreading quickly in recent weeks, it is difficult to envision what normal may look like.
I suggest we set goals, but we are extra gentle with ourselves this year. Self-care is essential. After spending 22 years as a fee-only financial advisor, I am convinced that our most valuable asset is our health. Having an enormous investment account is worthless if we don’t have our health, and health includes physical and mental well-being. Therefore, a goal that will help us improve our health needs to be our primary focus.
Next, I believe relationships are extremely important, so I recommend setting a goal to improve a relationship in your life. The third level of importance involves our finances.
I suggest you select one goal each in the categories of health, relationships and finances. However, the goals should be personalized and, if you want all your goals to pertain to your health this year, then feel free. Listen to your heart when setting your goals for 2022.
Below are a wide range of potential goals in the categories of health, relationships and finances. I recommend you use these goals as a starting point. Take at least 15 minutes of quiet time to ponder what goals you would like to set for 2022. Write them down, because psychologists tell us that will greatly improve your chances of accomplishing them.
Share your goals with someone close so that person can be supportive. Set small goals that are realistic. If you want to write a book, you may set a goal of writing one paragraph each day.
Health
- Get some form of exercise four days a week. Think about the type of exercise you would enjoy and include variety. Even laying down to stretch for 20 minutes can count. In addition to the typical forms of exercise, look on YouTube for exercise, dance or yoga videos. There are thousands of free videos available.
- Commit to eating less _______________. You fill in the blank. You could choose sugar, processed foods, junk food, red meat, coffee, soda, alcohol, dessert, white processed carbohydrates (such as white rice, pasta, and white bread) or snacks at night.
- Commit to eating more _______________. Perhaps you will choose natural foods, fruits and vegetables, fiber, fish, breakfast.
- Get a massage.
- Go to a physical therapist to get help with aches and pains.
- Take a hot bath.
- Cook at home more. Take time to plan healthy meals and buy the ingredients.
- Make an appointment with your doctor or dentist, and be proactive with your health.
- Plan a “mental health” day. Have no commitments and do not work on that day.
- Read books or watch videos on healthy lifestyle choices.
- Go to a wellness retreat.
- Buy yourself something that will bring you joy.
- Start a gratitude journal.
- Write your thoughts in a journal or a blank book.
- Start practicing meditation.
Relationships
- Decide which relationship you want to improve in 2022. Make a deliberate effort to call that person more often, meet at a restaurant (safely), or do something together.
- Set a weekly “date” night with your spouse. Enjoy a nice meal and talk.
- Use email and social media less, and call a friend instead.
- Pick up a new hobby, such as taking an art, photography, computer or exercise class. Go to lectures on topics that appeal to you. Join a hiking, running or walking group. The purpose is to expand your horizons and meet new people.
- Plan a family reunion.
- Arrange for old friends to meet for a long weekend or a special trip.
- Volunteer at a charity, a soup kitchen, a school, an assisted-living facility or a library.
- Plan a trip with your spouse or a friend. (Due to the pandemic, this may need to be late 2022 or 2023, but you will look forward to the trip in the meantime).
Finances
- Simplify your finances. If you have three bank accounts, eliminate two. (Choose your favorite bank or credit union and close the other two). If you have multiple IRAs, combine them.
- Open a Roth IRA and fund it for 2022. Persons over 55 can contribute up to $7,000. Those under 55 can contribute $6,000. You must have “earned” income to fund a Roth IRA, so retirees are not eligible. There are also income limitations for funding a Roth IRA: Modified adjusted gross income for a single person must be below $129,000 or $204,000 for a married couple.
- Learn why you own the investments in your accounts. If you work with a financial advisor or broker, ask lots of questions and request that they educate you on why specific assets are in your investment accounts. Is the asset allocation (the percentage of stocks/equities vs. fixed income) in alignment with your tolerance for risk? Most economists agree that a major correction is coming for the U.S. stock market, but no one can predict when it will occur. There is no reason to take excessive risk with your investments. If you are unhappy with your financial advisor or broker, consider switching to someone you will like more.
- Educate yourself about any of the following: emerging markets; foreign investments in developed markets; U.S. industries, such as health care, utilities and technology; types of bonds (U.S. government, corporate, mortgage-backed, foreign); passive vs. active investing; withdrawal rates during retirement; costs within investments; or tax-efficient investing.
- Talk with your child or grandchild about money. Share stories from your life that include smart money decisions, as well as poor money decisions. Tell them about the hard times, including what family members experienced during the Great Depression, how hard it is to save a large amount of money (teaching them the danger of immediate gratification), or how dangerous credit card debt can be.
- Tackle any money issues you want to improve in 2022, such as paying off credit card debt, funding your retirement account or spending less on eating out, gifts, or clothing.
- Plan to spend money on experiences (travel, concerts, family events) that will bring you more joy than buying “things.”
Good luck setting your goals for 2022. I recommend you track your progress on your goal on a calendar or in a journal. If your goal is to exercise four days a week, put a check for each day you exercise. This will show the progress you are making. When you accomplish a goal, take time to celebrate. We often forget to give ourselves rewards, but it is important. Treat yourself to something you will enjoy.
Zelana Montminy, a Positive Psychologist and the author of “21 Days to Resilience” encourages setting mini-goals. She states “Our brains work best when we break bigger lifestyle changes and goals into small, really actionable things.”
Those small steps may seem minor, but they add up quickly to massive improvement. Happy 2022!
*Illustration by Cathryn Cunningham/ Albuquerque Journal