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Wise Financial Planning Resolutions to Make in 2021
Jan 06, 2021
In 2020, we all learned that both the economy and personal finance can be unpredictable. But as we head into a new year, it’s time to put those lessons to good use. The following resolutions can help you get your financial life in order - and keep it that way.
Consider income-generating options.
Beef up your resume, enroll in some classes, or take on a side gig. Having diversity in skill sets and experience can help you skate through employment challenges in the future.
Build up your emergency fund.
If you’re fortunate enough to have the ability, trim down expenses as much as possible and then devote extra cash to a savings account.
Rearrange your priorities.
With each paycheck, you should be your own top priority. That means dedicating a set amount to your retirement fund and personal savings first - then paying for everything else.
Bump up your saving rate.
On that note, make a plan in the event that you’re fortunate enough to receive a bonus, raise, or any extra money this year (hello, stimulus check). It can be tempting to spend that money on a splurge item, but long-term planning is more rewarding. Pay off a high-interest debt, stash the cash in savings, divert it to your retirement fund, or use it to pay for classes or some other upgrade that adds to your job marketability.
Reduce your dependence on credit cards.
Make a shopping list before leaving home, and stick to it. Shop with cash, or use cards for necessary purchases only. Identify the difference between impulse purchases and necessities and put yourself on a spending diet while you bulk up savings and eliminate credit card debt.
Double check your insurance needs.
If you haven’t assessed options such as life insurance or disability insurance lately, it’s time to assess your risk and family needs. The right insurance can protect you and those you love from financial difficulties when unexpected events strike.
Talk to your financial advisor.
Give us a call to discuss your retirement plan, savings rate, and other questions regarding your finances. We can help you identify which steps you need to take in order to get on solid ground and stay there.
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