Money resolutions can feel futile, especially if you’re already buried in debt or have a history of poor credit. However, if the fear of failure prevents you from even trying to achieve any financial goals, it may be time to think smaller. Throughout 2021, you can take several small initiatives that, when combined, will lead to the ultimate financial balance. There’s no denying that the previous year was turbulent. The coronavirus epidemic, a tumultuous election, and extensive protests were just a few of the events that shaped our country in 2020. Thankfully, new vaccines have arrived, giving hope for a better 2021.
Why not start with your finances if you’re looking for a fresh start this year?
Here are some tips for you that you can follow.
Rethink your financial goals
While the epidemic may have caused your financial goals to be postponed or stopped, now is a beautiful opportunity to refocus. Examine the financial objectives you set for yourself last year. Maybe you planned to build up your emergency fund or put money aside to down payment on a house. Perhaps you wanted to put extra money into your retirement fund. Where you manage to achieve your objectives despite any difficulties caused by the pandemic? Do you have any new purposes for 2021 that you’d like to achieve? Will you need to reprioritize your goals if your personal or financial circumstances change?
Do your taxes ASAP
Avoiding identity theft as a taxpayer can cause a refund to be delayed. Furthermore, an early repayment can help you improve your financial status.
Give cash a try
If you’re prone to overpaying on credit or debit, try having cash solely in your wallet for a week or two. You can’t spend too much money because once it’s gone, it’s gone.
Automate Your Savings
Set up an automatic transfer to save money in a savings account while we’re on the subject of saving more money. It doesn’t matter how much you save; the important thing is to make saving a habit. Too many of us make plans to save at the end of each month but never follow through. So, once you get paid, set up an automated transfer. If you have a dire situation, your employer may even allow you to divide your pay check.
List out your debt
Paying off debt is a frequent New Year’s resolution, but the first step, according to Holly Johnson, publisher of personal finance blog Club Thrifty, is to compile a list of everything you owe. She advises that you should list all your debts, along with the total amount outstanding and the current interest rate. Once you’ve completed your list, you can devise a strategy for paying off your obligations — or dramatically reducing them — over the next 12 months.
Eat At Home
Every time you visit, the variety of culinary options and the ambiance will entice you in. However, eating out too frequently will quickly deplete your money. Saving a little money will improve your situation dramatically. It’s no surprise that you get more bang for your buck when you shop at the grocery store. You can still eat out, just not regularly.
Spring-clean your credit report
Pull your free annual credit reports from AnnualCreditReport.com and dispute any mistakes with the credit bureau in question to conduct a thorough audit.
Re-evaluate your savings strategy
Consider a savings vehicle, such as a money market fund or a Certificate of Deposit, to check if you can increase your savings by creating a new account with a greater annual percentage yield (APY) than your existing one (CD).
Save Money on Cleaning Products
Have you noticed how much cleaning goods have increased in price? Having to stock up on several cleaners might quickly drain your bank account. Fortunately, there are several simple steps you may take to save money. To save money, you might purchase generic brands. Alternatively, you might make your own. You may save money by choosing simple materials that are also environmentally beneficial.
Have a no-spend day
Spending can sometimes become a mindless habit and becomes easier the more you do it. Commit to having a no-spend day for one day this month. You may save a few dollars to a lot more depending on how much you regularly spend. This is a fantastic method to re-evaluate your purchasing habits and hit the reset button.
Take a Daily Money Minute
The founder of LearnVest, Alexa von Tobel, swears by setting aside one minute each day to check on her financial transactions. This 60-second act aids in quick identification of difficulties, tracking goal progress, and putting your spending tone for the remainder of the day!
What’s our go-to method for paying off several credit cards? You can pay as much as you can toward the bill with the highest APR while keeping your other credit cards at the bare minimum. You’ll save money on interest this way.