Here are a few tips for how to get your finances on track in 2021.
- Determine your goals. Laying out your goals and writing them down is the first step to staying on the right financial track. What’s most important to you? Whether it’s saving for your child’s college or funding your own retirement, those will require a different plan of attack. You have to articulate your goals in order to prioritse them.
- Create a budget and one that’s realistic and involves research. Look at what you spent in all categories in 2020. Use that as your basis for your 2021 budget. And include everything: wedding gifts, gas money, groceries, oil changes. Whatever is left over should go toward paying off debt, a savings account or some type of investment.
- Consolidate loans.Consider taking advantage of low interest rates by refinancing your mortgage or consolidating your loans. You’ll feel better about contributing that money.
- Transfer high-interest balances.The New Year is a great time to take advantage of lower interest rate credit cards. By transferring your balances to cards with zero percent for 12 months, you can save thousands in interest charges alone. And, if you can pay them off in full, even if you have a little less wiggle room, even better.
- Keep calm, and save for retirement. It’s simple. You must save for retirement; there’s just no way around it. You have to take ownership of your future. Nobody’s going to do it if you don’t. Make sure you’re maximising your contributions and setting money aside for a rainy day.
The New Year can be a great excuse to step back, plan, and get your finances on track. If you follow these simple tips, you’ll begin to see the fruit of your labour this year. And it will be worth it.