One thing we learned this year is that nothing is certain in life and we need to be ready for everything. When it comes to finance that is especially true. Wether you managed to save during the coronavirus crisis or you were left in bruises, the start of a new year is a good time to focus on your finances.
In the new year opportunities for success are more likely to come to those who have a clear financial roadmap and who set realistic financial goals.
1. Create a Savings Goal
Once you’ve set a budget, it’s time to set a savings goal for 2021. Obviously, your savings goal should be attainable, but it should also be as large as you can manage.
Remember, the more you save now, the more that money will multiply or compound as time goes on. It’s also important to note that once you’ve set a savings goal and divided out how much money you need to put aside from each paycheck to reach that goal, you should put that money aside first and foremost.
If your savings are the first part of your budget you pay, they’ll be much less likely to get left out.
2. Research New Companies to Invest In
Take some time to research companies to invest in. While you will have plenty of opportunities to buy great companies at a great price, it still isn’t extremely often that the market puts high-value companies on sale. This makes it important to start now on researching the companies that you would like to invest in so that when these companies do go on sale you’ll be ready.
2021 might just be an amazing year to get amazing deals on wonderful companies that you wouldn’t be able to get any other time. That’s why saving and getting your finances in order is so important. When the market plummets, we want to be ready to take advantage of the fire sale on wonderful companies.
3. Use the right financial apps and services and save on fees
If you want to save on fees when you’re sending money to friends and relatives make sure you download Jeton app, it will guarantee you the lowest transfer cost in the industry and an innovative secure platform.
4. Pay off debt
Becoming debt-free is one of the best things that I’ve ever done in life. It opened up my finances to experience life the way that I wanted. Debt freedom gives you options, which is why it should be a money goal that you consider.
Consider paying off your credit card debt, medical bills, personal loans, and even student loans. If you want a lofty goal, even consider paying off your mortgage!
You can leverage the debt snowball method to pay off your debt. I also recommend creating a repayment plan with the help of Undebt.it–an app that helps you track your debt payoff.
5. Earn More
Side hustling is on the rise and a lot of people choose to turn their hobbies and skills into an extra earning methods. Before you choose a side hustle, think about how much money you want to make and the amount of time you’re willing to commit. A side gig that brings in some extra spending money is very different from one that can grow enough to replace your full-time income.
If you’re just looking to bring in some extra money for now, then consider a side hustle that’ll help you make money fast.
On the other hand, if your goal is to eventually replace your full-time salary, then you’re probably better off with a more long-term venture, like freelance writing or working as a virtual assistant.
6. Read more personal finance books.
Make it a short-term goal to read a few good personal finance books. Knowledge truly is power!
There are many places where quality information on reaching smart financial goals is readily available. We have gathered our favourite financial books that you can start reading in 2021 in the article: Change The Way You Think About Money With These Books
Money drives almost all facets of life. So, getting control of your finances is one of the best things that you can do for yourself. The first step is setting financial goals that you can work toward.