Setting realistic and attainable financial goals for 2021 is just one way to start the New Year on a solid footing. Having clear steps to work towards will ensure that you aren’t left overwhelmed by sudden, unexpected expenses that you are ill-equipped to cover. Determining your financial goals can also serve as preparation for the future enabling you to have peace of mind for the days ahead.
Start with a budget
A good old-fashioned budget is a great starting point as a basic tool for money management. It is a simple but effective process that entails tracking all your daily expenses against your total income and using this information to forecast how you manage your living expenses going forward.
Plan for emergencies
Putting away finances for life’s unexpected emergencies is important as the future’s unpredictability is certain. You should ideally aim to save at least three months’ worth of income at a minimum that will be enough to cover all your expenses should the unexpected occur and try to cut out or at least reduce one thing in your budget to help supplement this savings process. Decluttering your household and selling items that you no longer use is also a useful way to increase your savings. Another handy tip is to set an automatic transfer of funds at the end of each month that will go towards these savings.
Settle your credit card debt
If you have any credit card debt, make it a monthly habit to pay off your cards one by one starting with the smallest interest rate to the largest. There are different methodologies when it comes to paying off credit card debt – it is up to you to decide which method you identify with most and which will prove to be most useful to you.
Establishing medium to long-term goals
A budget is your platform to start planning for the future and the next step to achieving financial freedom. Financing dreams that require a substantial investment such as purchasing a vehicle or property and even retiring comfortably one day is achievable by having a financial plan for the next five to ten years and beyond.
Planning financially for the future and striving to reach these goals is an enormously beneficial exercise that will set you on the path to financial freedom. If one of your goals is to improve the look of your home, contact us today for financial assistance to help you achieve your goal of making your home even better.