2021 is here and we’re given yet another year to get things right and improve our situation. This includes the way we manage our money.
The pandemic has taught all of us a very painful lesson about preparedness and how important proper money management is. If you went through a financially challenging year last year, you can redeem yourself and change your life this year.
7 Financial Goals to Set for the Year 2021
- Make a financial plan.
When coming up with a financial plan, you should always ask the question, “Where do I want to be X years from now?” This will help you determine how to go about your plans. Setting a particular goal will somehow force you to make the necessary changes and take the necessary steps to achieve your goals.
- Build an emergency fund.
Emergency funds are essential as they can help tide you through unexpected circumstances, just like this pandemic. More than having spare money to tap into for emergencies, financial experts recommend that an equivalent of 3 to 6 months’ worth of expenses be included in one’s emergency funds. If it seems overwhelming, don’t worry, you can start small and gradually build it up to your target amount.
- Draw a budget and stick to it.
A budget seems very basic but a lot of people are struggling with it. While it’s easy to draw a budget and outline your monthly expenses, the real challenge is sticking to it. If you’re really serious about making a difference financially this year, you need to have the discipline to make things happen, including budgeting and sticking to it.
- Settle all your debts.
We’re now in a new year and one of the best ways to start (and finish) the year is to settle all your debts and wipe your slate clean. List down all of your debts and determine which ones you need to prioritize first. Your goal is to not just minimize but completely eliminate all of your debts to lessen your stress and anxiety. There are a lot of ways to tackle debts. Do your research and go with the one that works best for your circumstances.
- Save for retirement.
If you want to have a financially secure future, you will need to make certain sacrifices. Other than prioritizing your emergency funds and settling your debts, you also need to start setting aside money for your retirement. It’s never too early to start saving up for your golden years. If you still don’t have a savings account set up for your retirement, get to it now and don’t delay. You’ll thank yourself in the future for taking action today.
- Invest your money and make it grow.
One of the ways you can secure your future is to invest your money and make it work for you. Whether you choose to invest your money in real estate or stocks, the important thing is you find a vehicle for your money to grow.
- Buy a home or start saving for a downpayment.
Owning a home is every American’s dream. It is one of the things that a lot of people work hard and make sacrifices for. Talk to a real estate agent about how you can own a home, what the process is, and what it entails. Check a mortgage pre-qualification calculator if you’re eligible for a loan. Do what you can to take steps towards owning your own property.
If you just survived a year filled with financial challenges last year, it’s never too late to make things right for yourself and your family this year. Become a better money manager and set the right financial goals and do your best to stick to them to help secure your family’s future.