If you haven’t been able to accomplish any of your personal finance-related resolutions or goals this year, don’t feel alone. No one would have been able to predict how COVID19 and its accompanying chaos would affect the economy as a whole.
Although your specific financial plans will depend on your family and current circumstances with regards to income and employment, there’s no reason why you won’t be able to make 2021 your best financial year yet. Below are a few ways in which you can help make this happen for you and your family.
A Budget is Crucial
Although virtually everyone knows that a budget is essential if you want to make the most of your finances, several individuals don’t know how to use this tool effectively. A budget is not simply something that should be written down and then promptly forgotten – it needs to be amended as your financial circumstances change from time to time.
When creating a budget, you will need to know exactly how much income is being received and the full amount of all of the expenses that need to be covered each month. In addition, you’ll need to think about any additional financial goals that you’d like to achieve during the year. For instance, you may want to save up to earn that college degree you’ve always dreamed about or you may even want to spoil your family with that long-awaited overseas vacation once the pandemic is over.
After creating your budget, you’ll need to check that your income exceeds the amount of expenses that must be covered. If this isn’t the case, cuts will have to be made somewhere to rectify this.
Consider a Side Gig
These days, there are more opportunities available than ever before for anyone who wants to earn a little extra cash during their spare time. A few examples can include delivering groceries and/or transporting passengers through the Uber/Lyft platforms. Putting some of your spare time to good use by earning a little extra cash could make all the difference between being able to meet your financial obligations or not.
Eliminate Consumer Debt
Unfortunately, a number of households saw their consumer debt levels escalating during 2020 due to job losses and reduced income levels. This put a severe strain on the budgets of several families.
2021 provides you with an ideal opportunity to do everything possible to reduce or even eliminate as much of this debt as you can and some of the best ways to do this include reducing luxury expenses and doing everything you can to earn additional income that can be put towards debt payments.
Once you have a solid financial plan in place to ensure that monthly expenses are covered comfortably, it’s time to start considering the possibility of saving and/or investing towards long-term future goals such as retirement. Contact our team today if you would like to learn more about ensuring that you’ll be able to provide your family with a secure financial future.Continue reading