A lot of people are starting to think of what resolutions they can make to make the new year better, in terms of health and fitness, relationships, career, and so on. This is understandable as we emerge from a very challenging 2020, all bruised and changed by the numerous surprises that the old year had to offer. We all want to go into the New Year with positivity and hope that it will, indeed, be a better one.
So, as we write a list of our 2021 resolutions, let’s not forget to include financial resolutions so we won’t end up in a worse place than where we are now.
First off, let’s talk about debt. If you are one of those who have incurred debts this year because of pandemic-related financial challenges, 2021 would be the time to resolve to pay them off. If we can’t get rid of them entirely—and this includes credit card debts—then at least make sure to erase most of it. It is also closely related to our mental health, which has become a very important consideration these days.
Another financial resolution that we can make for the New Year is to cut our expenses where we can. To be able to do it well, it’s important to re-examine our budget plan. An important component of this budget would be your priorities and your financial goals. Your spending must align with these. And don’t forget to assign a budget for unexpected expenses and emergencies. We’ve all learned this lesson the hard way in 2020.
Finally, save money intelligently. You need something for emergencies and even for your family in case something happens to you. The pandemic only showed us the grim realities of life and forced us to face our limitations and mortality squarely. Life insurance, investments, and high-return savings products—these are just some of the items that we should look into for 2021. Chances are, we already have investments, insurance policies, and savings—but it is imperative to look into all of it again to see if it’s enough, and to check how it can be maximized.
The three financial resolutions cited here are very basic but they contribute to building a stronger financial position, something that we all have to work towards as we try to recover in 2021. Debt management, budget realignment, and intelligent saving and investing should form part of our financial strategies for the coming year.
Twenty twenty-one is going to be a year of recovery. Inasmuch as we want to expect that things will be great, some experts are saying that we are going to face more economic challenges this coming year. There is work to be done to be able to rise from the bottom. Positivity coupled with hard work, I believe, would be the best formula for financial recovery in 2021.