A new year is a new chance to get your finances on track. Whether you’re a new adult starting out into the world or just wanting to get your life moving in the right direction, making financial decisions can be hard and scary.

As you are going through 2022 trying to improve your financial situation, here are some mistakes to avoid or correct that will help you in the future.
 

Don’t Abuse a Credit Card

A credit card can be an incredibly useful financial tool. It provides people with financial flexibility, can help simplify spending to a single bill, and reward spending with different points or perks. But in the unprepared or uneducated hands, a credit card can be really dangerous.

If you are new to having a credit card or are looking to build your credit by using one, you need to make sure not to dig yourself into trouble. When using a credit card, be sure you can afford everything on it and can pay it off when the bill comes due. Don’t load it up with multiple large expenses you can’t afford and plan on paying it off over time, unless you have a card that charges zero percent interest. 

Interest rates on credit cards can be incredibly high, and if you miss a single payment, it can become hard to pay off. Abusing a credit card can lead to hurting your credit score and put you into debt.
 

Not Contributing to a Retirement Account

Regardless of age, from new adults to those on the cusp of retirement, you need to be contributing to a retirement account. Not having and adding to a retirement account, whether it’s an IRA or a 401(k), is a huge mistake many people make every year.

Even if you only have a few dollars every month you can put into it, the earlier you can start an account, the better off you’ll be later. Between regular contributions and the growth your money can have in a retirement account, it will grow exponentially over time. 

If you need to open a retirement account, Pioneer offers an IRA option to our members. It’s a great place to make regular deposits and start building up your retirement funds.
 

Having Unused Subscriptions

Everybody seems to have a subscription you can sign up for. Netflix and Hulu for television, Hello Fresh for meals, Dollar Shave Club for razors. Even Taco Bell now has a subscription for tacos!

But do you need every single subscription you’re currently paying for? Maybe you have a bunch of video subscriptions, but only watched shows on Netflix this month. That money you spent on the other video subscription services was wasted this month.

Look through all of your subscriptions for any you aren’t actively using, or maybe even forgot about. Make sure you are getting your money’s worth from each and every one. Maybe you aren’t watching enough shows on one of the streaming subscriptions to make it worth it, or you aren’t really using the food from your meal plan. Cut the extra costs and save some money.
 

Having a Financial Plan

Do you have goals that require money? Are you dreaming of buying a house, or a car, or even retiring some day? You need to have a set financial plan to reach your goal. 

In fact, it’s smart to have a financial plan for all aspects of your life. A financial plan is more than just a budget, it’s a plan for your future finances too.

A good financial plan should include everything money related in your life. This includes anything you’re currently working towards, your current credit score, any debts you have, insurances, and any other life affecting financial matters. Your plan should also look towards the future, like retirement or future expenses. 

A good place to start on your financial plan is with your monthly budget and grow it from there. Plan out yearly expenses, future costs, and plans to reach financial goals. If you need assistance with any part of this, and are a Pioneer member, you get access to GreenPath Financial Wellness, a financial counseling service.
 

Not Using Your Credit Card Rewards

Credit cards are useful financial tools, providing flexibility to their users, but there is so much more to them. Nearly every credit card provides an extra benefit, like reward points or miles for flights.

If you have a credit card, you should keep track of your current rewards and make sure you are using them. If you don’t use them, that’s just missing out on extra money or perks! And if you have a credit card without extra rewards, why? There are many credit cards out there with great perks, you should try and get the most out of each purchase with a credit card.

Pioneer members with a credit, or debit card, earn points for Rewards! with every purchase. These points can be redeemed for tons of stuff, including gift cards, merchandise, or even donated to local charities.

Open a Pioner Credit Card