It’s December, which means right around the corner is … 2022! Sort of sneaks up on you, doesn’t it?

As we turn the calendar to another new year, let’s get in the spirit with a little New Year’s trivia: Where does the tradition of the New Year’s kiss come from? It stems from the German and English New Year’s masquerade balls where one would remove one’s mask for a kiss as it was believed a favorable first encounter would set the tone for the rest of the year.

You can set the tone for a more favorable financial life by identifying which area(s) below apply to you, and resolving to address them in the new year:

Reduce Debt

Pay off credit cards. You could use the avalanche method, which list debts from highest interest rate to lowest, then pays the minimum on each and pays as much extra as possible to the one with the highest interest rate. Alternatively, you could use the snowball method where you pay off debt in the order of smallest to largest, rolling the payment from the smallest debt to the next smallest upon payoff, and so on.

And once your plan is in motion, don’t add any new debt but rather strive to become debt-free.

Control Spending

The first step is to create a personal budget or improve upon the one you already have. Try spending only cash instead of using credit. That way, when you run out of money, you stop spending.

Prioritize your spending as “wants” vs. “needs.” Also, overcome your desire for instant gratification. The satisfying rush of making the purchase is often followed by the guilt of paying for it later.

And lastly, don’t try to keep up with the proverbial Joneses.

Save More

The steps above may free up more funds to put toward savings, but here are additional ideas to help you save.

Split your direct deposits so a portion goes directly into a savings account. Set up an emergency fund with a goal of having three to six months of living expenses in that fund.

Think about long-term goals, like retirement, and contribute to your employer’s retirement plan (at least to the matching amount if offered by your employer) and/or your own IRA.

Improve Credit

Commit to checking your score and credit report more frequently. If you’re planning to be in the market for a home or auto loan, consider signing up for credit monitoring and identity theft protection.

If you are not planning to open any new lines of credit, freezing your credit will greatly reduce the threat of identity theft and could help eliminate the need for a paid monitoring service.

As stated by Plato, arguably one of the most famous and influential philosophers, “The beginning is the most important part of the work.”

So, put your financial resolutions in place, be sure to get that first kiss of the new year, and start 2022 with a solid wealth plan.

Merry Christmas to all you readers. Wishing each of you a prosperous New Year.

Wendy Bennett is a senior financial adviser at Bennett Associates Wealth Management in Butler.