4 Financial Resolutions You Can Keep

It is probably a fair assumption that many people are looking forward to the new year. 2020 was difficult for many reasons, if you experienced financial loss or consider the year a financial wash, this is a good time to look forward and set new goals. Below are a few ideas for helping you meet your 2021 financial goals! 

1. Calculate Your Net Worth 

If you haven’t recently (or ever) calculated your net worth, the new year is a great time to do it!  Understanding your net worth is an important step to assessing your financial health and reaching your goals. By looking at your assets and liabilities, it will provide a clear picture of how you spend your money and provide insight as to how you could better manage your spending and saving.

2. Set a Monthly Budget and Stick to It

A budget is a plan for how to spend your money. There are many tools to help you create a budget, but one straightforward way to go about it is:

• Write down your total income.
• List your expenses.
• Subtract expenses from income to equal zero.
• Track your spending.

There are numerous apps and websites that make tracking your spending incredibly easy.  This article from Forbes may help you choosing an app to help you track your spending.

3. Make a Plan to Pay Down Debts and Credit Cards

Taking out a loan or using credit cards is a great way to afford things you need now.  However, what many of us do not consider, is we are essentially just relying on future income to pay off those debts. Debt can decrease your future standard of living, by making you live on less. Access a debt or credit card payoff calculator to help determine what payments are feasible within your budget.

4. Revisit Your Goals Periodically

Every few months, check in on your goals. This could serve as a nice reminder of what you hoped to achieve and can set you back on the right path to meet those goals.  Or, if an unexpected life event (like perhaps a pandemic) changes your financial picture, update your goals, as necessary.

Stating your goals clearly and simply is a great way to get started! Whether you are looking to simply feel more stable, pay down debt, or grow your savings account, we hope these tips and tools help you reach your goals in 2021.