The Ultimate Guide to Grow and Protect your Money 2022

With the New Year now officially underway, many people will be looking at how they manage their money with a fresh set of eyes.

To help, I have compiled a list of 41 Best Ways to Grow and Protect your Money in 2022. 

 

1. Spend Less than you Earn

Without spending less money than you make, you will never have enough left over to save, pay down debt or invest. This is the golden rule – live by it.

2. Start Saving ASAP

The sooner you start saving, the wealthier you’ll be. If a 20-year-old invested £400 a month into the stock market and achieved a 7% return, he’d have £1,056,049.92 at 60 years old.

3. Track your Spending 

Bring awareness to the flow of money in and out of your life by keeping track of everything you spend. Use pen and paper or a budgeting app like Money Dashboard.

4. Create a Budget

Once you know how much you currently spend, Create a Budget that you can stick to, but that will also force you to save.

5. Save an Emergency Fund 

The brown stuff will one day hit the fan. Save 3-6 months of living expenses as an Emergency Fund in instant access savings accounts to deal with it.

6. Make a Financial Calendar

Mark on your calendar all-important bill dates (including quarterly and annual bills), and financial goals to keep you accountable.

7. Calculate your Savings Rate

Continually seek to improve your savings rate. The higher your savings rate, the faster you’ll reach financial independence.

Savings Rate = Monthly Savings ÷ Monthly Net Income

8. Gamify Saving

Make saving fun by playing saving games. Try a no-spend month (except essentials), save £5 a day challenge, or try not using the car at weekends. Use the PLUM to start saving on autopilot.

9. Create a Want List 

Don’t buy anything on impulse. Write it on your want list, wait 30 days, and if you still want it, look for the best possible deal.

10. Clear all Bad Debt 

Bad debt, such as credit cards and car loans, leave you poorer every month. Clear debt by using the debt snowball method (pay off the lowest amount first) or the debt avalanche method (pay off the highest interest loan first).

11. Exercise your Frugality Muscle 

Try living more frugally (walk or cycle to work, cut your own hair, cook all meals at home).

You can always go back to your old ways if you dislike it and at least you’ll have saved some mullah.

12. Cut Non- Essential Spending 

Bag some quick saving wins by cutting unnecessary spending: cancel hardly-used subscriptions, bring your lunch to work, and stop eating out as much.

13. Tackle “The Big Three”

Once you’ve trimmed your budget, it’s time to tackle “The Big 3”Housing, travel, and food are people’s largest expenses.

Being able to save 50% or more of your take-home pay is often the result of “hacking” these expenses (suggestions below)

14. Reduce Housing Costs 

Get a flatmate, move into a shared flat, move to a smaller house nearer work, rent out or Airbnb a spare room.

The Rent a Room Scheme lets you earn up to £7,500 per year tax-free from letting out accommodation in your home

15. Trim Travel Costs 

Buy a more fuel-efficient vehicle, car share, take the bus, or sell the car and buy a bike.

16. Slash Your Grocery Bills

Make all your meals at home, bring your lunch to work, change diets or cut out alcohol. Switch to discount supermarket ALDI and save £00’s a year.

17. Plan your Meals

Plan what you’re going to eat for a week and shop with a list. This tip could easily save you 30% or more on your groceries.

18. Switch Energy Suppliers Annually 

The cheapest rates are usually reserved for new customers.

Get a Quote from EDF “USwitch Best Value for Supplier of the Year 2021″.

Then earn extra money by referring friends and making £50 every time they sign up.

19. Negotiate your Bills

Haggling with (or switching) the supplier of your broadband, TV package or mobile phone could save you money every month.

20. Know your Credit Rating 

Check your score monthly and do what you can to improve it. Sign up for a FREE Credit Report with Experian.

21. Use Credit Cards Wisely 

Credit cards build your credit rating and also provide cashback, vouchers, Airmiles and other rewards. Using them wisely is free money! But make sure you set up a direct debit to pay off the full balance every month.

22. Try to Increase your Salary

Is it possible to earn more doing what you currently do? Can you seek a promotion, work more hours, or switch companies? I once got a £10k salary increase by simply asking. It never hurts to ask.

23. Get your Side Hustle on

What skills do you have (or could quickly learn) that could be used to start a business alongside your job? 

Side hustles allow you to save more and could even lead to quitting a job you hate to do something you love.

Earn extra cash freelancing with no experience on FIVER.

24. Visualise your Dream Lifestyle 

What does financial success look like to you? How much money would you need to live the lifestyle you want?

Calculate the cost of all the one-time purchases and income you would need to live the life of your dreams.

Now get to work on that number by

25. Set Goals and Celebrate the Wins 

Achieving financial independence takes years. Keep motivated along the journey by setting mini-goals and rewarding yourself when you reach them.

26. Use Affirmations 

Okay, this one’s a bit woo-woo, but it works. Come up with a money mantra to keep focused on wealth and attracting it into your life. Feel free to use mine.

“I am a money magnet. Money flows into my life in abundance, and I multiply it with ease.

27. Get an Accountability Partner 

Having an accountability buddy works for all goals, so why wouldn’t it work for money?

My Girlfriend is my main “money buddy”, but I also talk about my goals and progress with my business partner.

28. Learn to Invest 

Learn about the different types of assets and their risk and reward.

Check out the Invest Money section of the site.

Claim a FREE SHARE to get started.

29. Find out your Risk Profile 

High returns usually carry higher risk. Complete a FREE Online Risk Questionnaire to determine your appetite for high-risk investments then…

30. Decide on Asset Allocation

Building a portfolio that matches your risk tolerance will allow you to keep your nerve during market crashes.

Understand what Asset Allocation is and Why it Matters.

31. Have a Written Investment Plan 

A plan detailing your investing goals, strategy and rules will stop you from making emotion-based decisions (which often tend to be poor).

32. Contribute to your Pension 

Set up a personal pension if you’re not automatically enrolled in your company pension. Pensions are one of the best investments you can make to grow your money as you are eligible for tax relief on every contribution you make. Check out my article Pensions Explained for Dummies.

33. Use your ISA Allowance

Invest in your ISA before you invest elsewhere. You don’t pay tax on any income or capital gains on investments held in your ISA.

You can contribute up to £20k into an ISA each tax year. Open a Stocks and Shares ISA with INTERACTIVE INVESTOR.

34. Get on the Property Ladder 

Do the math to see whether owning or renting is cheaper in your area. If renting’s cheaper, own property through investing in buy-to-let or property funds listed on the share market.

35. Build Multiple Sources of Income 

Having all your income come from a job is risky. Diversify your income sources by buying investments and building side hustles.

36. Track Passive Income and Net Worth 

What you pay attention to grows. If you want to build wealth, track net worth. If you want to create more freedom in your life, track passive income.

37. Insure against Disaster

Ensure against all losses that you can’t afford to pay. At a minimum, you should insure your house, all of its contents, and your car.

Compare Insurance Quotes at Mustard.co.uk

38. Buy Life Insurance 

It’s grim to think about, but make sure that the people that depend on you are financially supported in the event of your death.

39. Make a Will 

Make sure your loved ones the right people receive your assets when you pass away. Make a Will Online

40. Protect your Income 

Your ability to make money is your most valuable financial asset. Income protection insurance will replace part of your income if you can no longer work due to illness or injury.

41. Get Critical Illness Cover 

If you develop cancer or have a stroke or heart attack, you might not be able to work, but you’ll still have bills to pay.

Critical illness insurance stops your family from being burdened with financial obligations if you become seriously ill.

Conclusion

So there you have it, 41 tips to grow and protect your money in 2022. If you put these into practice you will become financially successful. 

It won’t happen overnight but it takes time, dedication and persistence to build wealth and passive income.

And without adequate protection, your entire world can come crashing down if life throws you a curveball, so this should be neglected either.

Hopefully, you found this valuable, let me know in the comments below.

 

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