2021 Financial Resolutions

2021 Financial Resolutions

December 22, 2020
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With the New Year coming, it is time to make our yearly resolutions! Here are some financial resolution ideas:

  1. Start Investing

If you have not, start now. Now is better than later when it comes to investing because of the potential for compound interest. There is not a better time to start investing into your future!!

  1. Build Up Your Emergency Fund

As we know, 2020 shook our financial worlds. This year should have proven why we all need an emergency fund in place. They can be a lifesaver when unexpected challenges happen like losing your job or getting into an accident. Make consistent contributions to get to your set goal amount. I recommend saving three to six months’ worth of emergency reserves.

  1. Start a Budget

Simply put, you need a budget. Creating a budget and sticking to one could be the single best thing you do for your finances. A budget shows you where your money is going. Knowing how much you spend each month allows you to not only make a more accurate budget but also to plan for the future.

  1. Pay Off Debt

Paying off certain types of high interest debt is an important step in becoming financially healthy. If you do not pay it off, you are doing a disservice to yourself. Knowing who you owe, how much you owe, and the terms of the debt should be your first priority to organizing debt payoff.

  1. Spend Less Money

Want to save more money? Then you need to spend less money. It is always easier said than done but this is where your budget comes into play. It will show you where you can save more and spend less on non-essential items! Always ask yourself prior to purchasing if this item is a “want” or a “need”?

  1. Long -Term Goals

Don’t get too caught up in your present financials and forget to plan for the future. Setting long-term financial goals will help you stay on track. These goals can include a down payment on your first home, retirement, saving for a wedding, kids education, etc. Once you decide what you are working towards, it is time to start planning how you are going to pursue them.

2020 was a chaotic year. Here is to a bright and prosperous 2021!

 

This is meant for educational purposes only.  It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.  (12/20)