From losing weight to spending more time away from phones and with loved ones, there are many great New Year’s resolutions to change yourself for the better this year. If you’re looking to revolutionize your year, try committing to these financial New Year’s resolutions!
Develop A Monthly Budget
If you’re unsure where to start on the road to financial independence, there’s an easy first step: create a budget and stick to it! One can even have this financial New Year’s resolution down pat by spring with a little dedication. Budgeting might seem simple on the surface; after all, it’s just tracking what you spend and earn, making sure the former is less than the latter. However, keeping it up can seem like a scary proposition! Thankfully, there are not only many great blog posts but even apps that will make daily budgeting a breeze. Some of the most popular apps include Mint, Simple, You Need A Budget, and Wally.
Create An Emergency Fund
Without a doubt, 2020 made clear the importance of an emergency fund. Unfortunately, many lost their jobs without much in the savings account. 2021 provides a great opportunity to ensure this never happens to you. Of course, the amount one will need in their emergency fund will vary from person to person. As a general rule of thumb, you should have three to six months of all necessary expenses covered, at least, in your savings account. That includes all bills, rent, groceries, transportation costs, childcare costs, and so on. Stocking a healthy emergency fund can take some time, making it an excellent financial New Year’s resolution.
Prepare For Retirement
So, you already have a solid savings account and a handle on your budget? Well then, make 2021 the year you start focusing on your retirement! After all, it’s never too early to start saving for retirement. While building a fund for your older years is a life-long task, every journey begins with a single step. Start by thinking about just how much money you’ll need to support yourself, your spouse, and any other dependents. If it all seems too far away, remember: those that start early often retire early! Preparing for retirement is all about a 401(k) or Roth IRA, and personally saved funds not sheltered by taxes and government. Make sure to go over these in-depth with your financial advisor this year.
Write A Will
Nope, will are not only for the elderly! While it might seem scary, in reality, any adult out on their own should consider creating a will. With countless online and offline organizations that can help write and authorize a will, it’s easier than ever before in 2021! Just so you know: if there’s no will present at the time of one’s passing, many states take over the job of distribution. Sadly, 2020 taught us that we all might pass at any moment. Find the silver lining by ensuring that your family does not need to fight or stress, by writing a will. This is another simple resolution that can be completed in just a few months!
Remember: most people fail New Year’s resolutions because they take on too many or burnout. Instead, choose one financial resolution and work on it with patience and diligence. Before you know it, you’ll complete your goal and move onto bigger and better things in 2021!
Sources: Money Crushers, Money Under 30