New Year’s Resolutions should include money goals. To make and achieve those financial goals could be more difficult this year with the COVID-19 pandemic still in full force. Just like many people make resolutions to lose weight in the new year, financial goals are just as important. To lose weight, we need to exercise more, eat less, and sleep better; for money health, we need to save more, spend less, and make smarter decisions.
1. Spend Less
Believe it or not, that has been a benefit of COVID-19 quarantines. Less travel, eating out, and money spent at the dry cleaners are just a few ways Americans have spent less money during the pandemic.
2. Save More
Do not just say ‘I want to save more in 2021.’ How will you save more? How much will you save? What will you do with the extra money you save? Saving for children’s college funds, putting away more in retirement savings, or paying off debt are all examples of goals for 2021.
3. Plan ahead
Did you know there are 53 Fridays in 2021? If you get paid bi-weekly, you could get 27 paychecks this year. Even if you aren’t getting that extra paycheck, now is the time to plan ahead. One way is to auto-draft. Set up a system to start the new year that will automate some of your paycheck into retirement, an emergency fund, or a college section 529 savings account. This will eliminate months that you forget to make the money transfer yourself.
As you achieve your 2021 financial goals, celebrate them! You deserve it and motivation to keep at it is key. If you have any questions about your money goals for 2021, don’t hesitate to reach out to Brien Smith at Brien@traditionswealthadvisors.com or 979-694-9100.
Source: Fidelity Viewpoints. 15 December 2020. https://www.fidelity.com/learning-center/personal-finance/2021-money-resolutions?ccsource=email_weekly