Whew, chile! If “doing too much” was a person, 2020 would be the poster child. The COVID-19 pandemic’s impact left millions of people out of work, with their hours cut, or with huge drops in their income. Families all over the world have been extremely affected by the pandemic and are desperately trying to recover.
As we kick off the new year, now is a great time to get your finances in order. Keep in mind you might not be able to check off every strategy this year, but as the viral car salesman Durell Smylie put it, you are well on your way to “where the money reside” with these financial strategies for 2021 and beyond.
Set a Spending Plan
Notice I didn’t say “budget”? There’s something about the word budget that makes people ready to square up like they’re in a middle school fight. Smart About Money offers tips on how to create your plan. You work hard and want to have a little something for yourself; we get it. Creating a spending plan gives you the power to choose what you will spend your money on instead of feeling like you’re being restricted to what you can’t have. Begin by determining your monthly fixed income, then determine what spending buckets are most important to you. Priority buckets will typically be rent/mortgage, utilities, groceries, and savings. After you’ve done your research and have determined how much you will need for your expenses, the next step is to create personal spending buckets, like an entertainment or travel bucket, that the remaining funds can go toward.