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Get help setting goals and sticking to budgets
If your 2021 resolution includes some sort of financial goal, you are not alone. According to a recent survey, more than half of Americans will make a money resolution for 2021, many with the goal of reducing debt or becoming debt-free. Whether your financial resolution is paying off debt, adding more to savings or making a major purchase, ridding oneself of financial worries eliminates stress, helping you to live a happier and healthier life.
Do you want to improve your financial strength in the next year, but are unsure where to start? We’re here with financial tips for the new year to help you achieve total financial control and wellness not only the upcoming year, but for years to come.
Committing to a financially “new you” in 2021
From outlining your goals, to setting benchmarks, to holding yourself accountable, there are many different ways to set yourself up for success and achieve your money resolutions.
Review 2020 spending
Aside from being the most popular time of year to set goals, the new year is a fantastic time to review your current financial situation with year-end resources like annual bank statements. Take a look back and get a better understanding of what went well or identify where there are areas for improvement. Taking the time to review 2020 financials will not only help you discover areas in need of the most improvement and set attainable goals, but it will also give you a chance to identify areas that could be cut in 2021.
Identify financial goals
Simply “saving more money” or “paying off debt” may be a little too broad to hold yourself accountable. According to experts who provide financial tips for the new year, being specific in your goal setting will increase your chance at success. While crafting your goals, review questions like: Is there something you want to buy? How much would you like to save each month? How much do you want to save by the end of the year? Is there debt you would like to pay off? Taking time to be specific and outlining a plan of attack will help you succeed in sticking to and achieving money resolutions.
Set up a personal budget
Whether you’re hoping to save money or pay off debt, tracking spending through a personal budget will help you set guidelines on what you can afford to spend or where you should cut back. An easy way to create a personal budget is to start by writing down all fixed expenses (rent/mortgage, groceries, insurance, etc.) then identifying how much money is leftover for flexible expenses. There are also a number of apps and software programs that can help you log and track spending.
Smell steps make a big difference
Throughout the upcoming year, keep in mind that small steps will make a big difference. Plan monthly “no spending days,” add an extra $5 to your savings account every month and commit to learning more about personal finance. Maintaining small habits throughout the year will result in major gains and financial benefits beyond 2021.
Past data shows you can succeed
Although we all just went through a year full of unknowns, 53% of people who set a money resolution in 2020 achieved their goal. You can do it, too!
We know that setting up a budget for the first time or learning more about personal finance can feel overwhelming. Here at Greater Alliance, we care about your financial health. That’s why we’ve teamed up with GreenPath Financial Wellness to help empower you to lead a financially healthy life. If you’re serious about improving your finances in 2021, we have financial tips for the new year, not to mention debt management services and free one-on-one financial counseling to make sure you start off 2021 on the right foot. Contact us to learn more.