New Year. New objectives. The main difference is that having captured my progress to the finest detail during 2021, I am in a position to better understand and plan ahead of the task devising accurate numbers for every contributor pot. This time last year, I took a conservative approach giving myself a round number of £1,000 and breaking the allocation down into four portions approximately equal in value matching my sources of Free Money. This time round, I have become a little bit wiser and also have produced a set of data to support my decision-making process.

Looking back at 2021, there are two obvious conclusions I can draw. First, I am reasonably certain that I can aim for a little bit more than £1,000 for the year. Second, decluttering sales have to play a bigger part than they did in 2021.

There will be no difference as to the tools I will be using to collect Free Money in 2022. The five main sources of Free Cash remain unchanged:

• Bank rewards & Interests over savings.
• Cashback deals & rebates.
• Decluttering & casual sales.
• Promotional sign-ups.
• Freebies or any other unexpected free cash.

Before I make any adjustments, I need to appraise my previous performance for each of them in order to be able to develop a fact-based projection of future Free Money Flows.

Bank rewards

Cash rewards offered by banks in exchange of: a minimum deposit per month, a minimum number of direct debits, a minimum debit card expenditure or any combination of them.

I collected a total of £192 in 2021. An average of £16 per month which is in alignment with my current setup: £3 from Natwest, £3 from RBS, £2-£3 from Santander and £8 from Barclays. However, I expect the reward from Barclays to get reduced to £3 from April 2022 as per their latest communication. That only means that I will need to find a way to make up for the difference. I am not inclined to raise or low the bar since £16 per month is most definitely attainable and within reach.

Interests over savings

Any interest generated as a direct result of keeping money in a bank or savings account.

I managed £184 in 2021 or £15 per month. I know I did exceptionally well and that the proceedings mainly came from my Moneybox General Investment Account where I deposited a £2,000 Emergency Fund. I cannot reasonably expect a 10% return year on year. In addition, if I was to take a more conventional and conservative approach, I should only be collecting Free Money from no risk investments. All in all, £5 per month seems like a more realistic target with a view of gathering £60 per year. I am most comfortable with it.

Cashback Deals & Rebates

Money collected from Cashback Websites as a result of an online purchase. Cashback is a commission over a sale that gets reimbursed to the buyer.

I made £258 from Cashback websites in 2021. My condition for cashback to qualify as Free Money is that the purchase must be non-avoidable. For example: car insurance is a must whereas holidays are discretional. Having made that important distinction, how much Free Money can I expect in terms of cashback in 2022? The answer comes from two main cashback streams: Insurance and Utilities. I have three undisputed candidates: car insurance, home insurance and energy supply. I own two cars and one home and based on last years figures I can expect an average of £42 cashback per transaction. According to these numbers, an ‘assured’ cashback income of £170 per year needs to be my baseline. On the other hand, it is not unreasonable to assume a £1,000 annual online expenditure on other unavoidable sales (ie: clothing, travelling and food). At an average of 3% cashback, I can make an additional £30 per year.

I am tempted but I will not reduce my £250 cashback target for the year since I have to give myself an allowance for casual purchases as well (ie: courier services). I have not spent that much in 2021 but last year was a particularly frugal one for me. I know that me and also the family as a unit will be incurring in random expenses. I will make sure that cashback is collected from them. £50 in additional cashback is not far-fetched.

Promotional sign-ups

Not strictly restricted to but mainly bank switch incentives and promotions. Banks will pay hard cash providing a new bank account is opened and a switch tool is used to close an old account in the process.

I switched/opened two bank accounts in 2021 for a Free Money Profit of £225. I struggled more than I thought I would to be honest as this has traditionally been a sure source of Free easy Money for me in the past. Two switches for a £100 cash incentive reward are doable on a given calendar year and I will stick to that number for now. I trust I will not have to wait until October to deliver this amount. Time will tell.

Decluttering Sales

This is Free Money coming from selling personal and household items I will no longer need. I am not buying stuff to resell for a profit. They have to come from a pool of redundant items that I once had a use for.

I made £1,352 in 2021 when I assumed I would achieve £300. A somehow conservative goal. I know I can do better than £300. Much better. I need to challenge myself in that department meaning that I will raise the bar to £500 profit from selling my clutter in 2022. I know it can be done. No question about it.

Freebies

This is unexpected Free Money coming my way from a variety of sources: from items donated that I can sell and cash out from, to a free bet at the bookies, a tax return, a test sample or money left and forgotten about at the bottom of a drawer. I cannot set a target though based on the random occurrence of these events and their unpredictable nature. I am positive they will happen, but I just cannot make a projection or measure their contribution accurately. Target is £0 by default because I have no means of making an influence. I consider them as a bonus. Always welcome.

2022 Free Money Objectives Summary:

Objective: £100 per month or £1,200 Free Money Earnings in 2022.

Tools: bank rewards & interests over savings, cashback deals & rebates, decluttering sales, promotional sign-ups and freebies.

Free Money Objectives by Source:

• Banks rewards and interests: £250.
• Cashback: £250.
• Promotions: £200.
• No longer needed items sales: £500.

Can I successfully achieve these Free Money Earnings in 2022? I am confident I can but I am also very aware that they will not happen by chance. I need to deliver. I certainly enjoy the challenge. Stay with me to find out where my Free Money Journey will take me to in 2022.