2020 was a tough year; it was financially disruptive for almost everyone. But as said every problem comes up with a new lesson. The best lesson we got from 2020 and the coronavirus pandemic is to stay prepared for everything.
Whether you have so far weathered the financial storm, and even managed to save swum money, or you have been left bruised by it. As we are at the beginning of a new year, this is an ideal time to focus on your finance.
If you are wondering how to achieve financial goals in 2021, here are some amazing ideas to be focused, savvy and strategic about money goals this year. Even in troubled times, there are always opportunities. Following these steps now can set you up to thrive this year and in the years to come.
First of all, make a list of places you have money. It includes your retirement accounts, brokerage accounts, savings, checking, CDs, and more.
Get a recent statement online or in your files for each and list out the total dollar amount in each account. Then move on to other assets such as home, car, valuable jewelry, etc. Also, list the approx worth for each item. The total dollar amount of all these items combined equals your total assets.
Same things apply on your debts- list each account and the value for your credit cars, student's loans, mortgage, HELOC, etc. The total is your liability.
Now you need to subtract your liabilities from your net worth to get a snapshot of your current financial health.
This New Year is a great time to achieve financial goals so that you can grow your money and wealth in the long term. Investment can be overwhelming for people who are not experienced, but there are various ways and options.
Initially, you should avoid a huge investment in property & investment of shares. Go for small investment plans so you do not have to think too hard about strategy as your money is guaranteed to grow while it sits in your account.
Credit-card debt is a great solution in the best of times. But presently, the economy is uncertain, it is best to avoid using credit cards as much as possible. It is never advised to spend money you do not have via revolving lines of credit. This is quite psychological that making a purchase via most credit cards makes us a lot less frugal and undisciplined.
Also, considering the interest rates are near all-time lows, paying 20% or more on credit card debt is a terrible financial decision to make.
We generally avoid thinking about retirement but all financial goals should be focused on your ideal lifestyle in the future. Start to plan and fix a sum of how much you need to retire and what strategies you can use to get there.
You may choose to go for super contributions to go ahead early and help you save more in the long run.
Another great step on how to achieve financial goals wipes out all existing debt. It will be the biggest favour you can do yourself in terms of meeting financial goals this year and lay the groundwork for success.
Have a look at your expenses and see which ones you can let go, and which ones you need to minimize to help clear debt.
Prioritizing all your financial goals will allow you to put all of them into specific categories as per your goals you want to achieve. Besides, set a realistic time frame for meeting those goals amid the uncertain economic landscape.
The start of the New Year brings about a chance to start over, to do this year better than the last. It is a fact that no one can predict the future but if you are worried and you want to take steps to strengthen your financial picture, this guide will surely help you. By following these steps of this guide, you can become financially healthy that will lead to improved overall health, confidence, opportunities and a better life.
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