How to Have a Happy New Year Financially?
Money-related New Year’s Resolutions are the third most popular resolutions people make after self-improvement and health. So, if you’re focusing on a “new year, new me” in 2021 and are hoping to begin by optimizing your spending, saving, and overall financial health, you’re definitely not alone.
Financial planning isn’t something we all love to do; it’s why we pay other people to do it for us! However, this year, try to take the time to rest, recharge and plan your new year as it relates to your finances in 2021. Here are five of our top financial planning tips to have a Happy New Year in 2021.
Financial Planning Tips for a Happy New Year in 2021
1. Set Specific, Time-Sensitive Goals
The key to making financial planning (and New Year’s resolutions) work lies in setting very specific and time-sensitive goals. If your 2021 financial New Years’ resolution is to simply “save more money,” you’re not really setting yourself up for success. Instead, get more specific.
Try something like “save $2,000 by March 31st” or “pay off $1,000 in debt by my birthday.” This allows you to step into a frame of mind where you can efficiently plan for the future and search for the tools that align with the specific goal. Not sure what kinds of tools you need? Well, we can tell you for sure that you’ll need to...
2. Get Yourself a Good Budgeting App
Listen up, everybody. If you don’t currently have a budgeting app then you’re living well behind 2020. We’ve even compiled a list of the best budgeting apps for you to use for personal finance. Since they’re not all equal in terms of their design, tools, and how they help you budget and save, we suggest playing around with a few apps to find the one that works best for your financial lifestyle.
Goodbudget, for example, allows you to allocate a percentage of your budget to certain spending categories and notify you when you go over budget. YNAB, on the other hand, makes you allocate every single dollar you earn, whether it goes to groceries, entertainment, or savings. Find what works for you and make it a habit of using the tool more in 2021.
3. Invest 10% of Your Paycheck in Debt or Savings
This financial New Years’ resolution might take a while to plan, which is why we suggest starting now. In 2021, if you want to optimize your finances, try investing 10% of your paycheck either in savings or to pay off debt. If you can’t make 10% work, try reducing it to 5% or even 2%. Literally, anything helps; what matters most is that you’re creating a habit. And, if you have trouble saving, we suggest breaking down the total amount to make it seem less “scary.”
For example, if your goal is to take 8% of your paycheck each month and put half towards savings and the other half towards paying off a mortgage loan, you’re really only looking at saving 2% each week of the month. This dollar amount, which will obviously be much lower than the total of 8%, seems much more manageable when you break it down into smaller, more easy-to-meet financial goals.
4. Meet with a Financial Advisor
If you’ve thought about investing, want to take a look at which 401(k) is the best option for you, or simply need to learn how to get your finances in order to reduce your self-employed taxes, it’s best to speak to a financial advisor.
Think about it; if you needed to get your physical health in order, you’d book an appointment with a doctor, and if you needed to get your mental health in order, you’d find a great therapist to work with. It’s the same for your financial health. Take the plunge in 2021 and find a local financial advisor who can help set you on the right path towards financial freedom or, at the very least, much less financial stress.
5. Get a Cheese Debit Card to Optimize Spending
Need help saving money in 2021? Get yourself a Cheese Debit Card. If you’re prone to overspending with a credit card and have trouble remembering to make your monthly payments, the Cheese Debit Card is a great alternative. It’s optimized to earn you cashback like a credit card is (in fact, it offers more cashback in some cases) and comes with zero fees and zero chances of you hurting your credit score.
Check out these perks:
❌ No Monthly Fee 🧀️ $5 cash bonus
❌ No ATM Fee 🧀️ Up to 10% cashback with every purchase/transaction
❌ No Overdraft Fee 🧀️ Potential Double Cheese Cashback
❌ No Insufficient Fund Fee 🧀️ Up to 3% Deposit Bonus
❌ No Minimum Balance Requirement 🧀️ Early Paycheck