New Year, New Finances
2020 is finally coming to an end, and now it’s time to make resolutions for the New Year. Rather than giving up something as harmless as chocolate – focus on your finances. Obviously, your goals will vary depending on your stage of life. Maybe you’re hoping to become a homeowner or purchase a new vehicle. Or perhaps you’re just trying to get your bills paid. Regardless of your financial situation, nobody’s perfect, we can all use a little advice for becoming financially fit.
- If you don’t already have one, build towards an emergency fund. Nothing is worse than going into debt for a flat tire or a sick child. Emergency funds are for unknown expenses. Stop maxing out credit cards for every emergency.
- What does your debt-to-income ratio look like? Perhaps this is something you can tackle in 2021. Create a budget that outlines your income, necessary expenses and whatever is leftover. Commit to putting that “extra money” towards your debt. Use a simple Excel spreadsheet or use my personal budget worksheet.
- If you’ve already accomplished the basics, start thinking about your future. Do you have kids? If so, have you started a college fund? The sooner you do, the more time it has to grow.
- Becoming financially fit can be as simple as giving up that daily latte or bringing lunch from home instead of eating out. Find an expensive habit and focus on putting that money to a better use.
Give yourself a mission statement: This year, I’m going to… pay every bill on time and in full or get out of debt or build an emergency fund.
I’d love to hear your goals for 2021! Share them in the comments below!