So here we are again, another year! Having started off with a cheerful little post on loneliness, I wanted to come back to thinking as the FIRE community, where you are definitely not alone. Whether you are new to thinking about personal finance or fully on your path, the new year offers a moment to take stock and think about where you want to be, and how you will get there.
Now, I don’t really make New Year’s resolutions. As my dear friend said – why add pressure? Why not just resolve to be kind to yourself, and treat yourself well? I think that is sage advice, but I do like to find tangible ways to treat myself well (and also to myself, said with love – this does not involve a cold beer and some cheese straws). I’ve written before about how managing your finances is an act of radical self care and it’s certainly true for me.
I know lots of people find thinking about finance stressful: try imagining instead that dealing with your money is a way of reducing stress now and in the future. You might have to sit and do some tedious legwork now, but what if it meant no more sleepless nights worrying about money? What if it freed up some brain space for you to dream and act on those plans? Now that’s worth a resolution.
So my advice to you, especially if you are just getting started, is to give yourself a break. We’ve all had a hard few years, and a lot of the financial (and other) news coming out suggests that 2022 isn’t going to be a bunch of roses either. The most important thing though is to give yourself some grace and some space, not just because you deserve it but because when you are ready to work on your finances (or your weight, your love life or your novel) you will come from a place where you are more centred and compassionate, and more able to engage.
I also believe there are a lot of easier ways to cut through the white noise of financial confusion. My next few posts will cover some options as to how to knock your finances into shape for 2022, when you are ready.
There is a ton of financial guidance out at this time of year. January feels like a fresh start, plus it’s common to come out of the holiday period feeling a bit queasy about overspending, or about carrying debt into yet another year. Sometimes the advice can be helpful, but I find many of them either over simplify – “set a budget and stick to it” is a frequent gem which makes me think “oh thanks! :facepalm:” – or cram so many different things in that it can feel overwhelming.
So my new year financial resolutions are limited to the following:
- Audit: Work out what my fixed costs are;
- Pay myself first: Work out what I can reasonably save and ensure that it is automated to come out straight after I get paid;
- Burn the budget: Basically, I’m not going to sweat what happens with the rest of my money. I mean, within reason.
And that’s it. Simples! Looking forward to sharing my audit process, and my own results, next week. Until then, put your feet up and finish off the Christmas chocolates. You got this.