The year will be ending soon, and many can’t wait for 2020 to be over. After all, it has been difficult for everyone – businesses closed down, people lost their jobs and almost everyone in the world stayed home to flatten the curve.
These challenging times, however, shouldn’t hinder or completely stop you from reaching your savings goal. Before you greet 2021 with a happy new year, commit to spending less and saving more.
Here are a few suggestions to make 2021 a financial game-changer for you:
Begin Saving for a Big Goal
If you want to start the New Year right, take the first few steps to achieve something grand with your hard-earned money. This could be anything from buying your first house to traveling to Japan and other Asian countries by yourself. Whatever goal you set, make sure you know the specific dollar amount you need and set aside money consistently.
Once you’ve set your money goal and its corresponding price tag, the next stage is to create a savings plan. The process for this is simple: Just divide the dollar amount you need to save by 12. If your goal, for instance, is to save $10,000 by the end of the year, you’ll need to set aside at least 833 dollars to achieve your goal.
DIY the Easy Home Improvement Projects
Some complex home improvement projects, such as water heater installation or repair, require an experienced professional to get the job done safely and effectively. As for the simple ones, try doing them on your own.
Learn to do manual activities, such as mowing the lawn or decorating your garden. Go online or seek help from your friends to learn the skills you need to complete the project. This way, you won’t have to spend a penny on something you can easily do by yourself.
Start a Side Gig
Reach your money goal faster by starting a side hustle. You don’t necessarily need a degree or become an expert at something to generate extra bucks. Just look around your local community and inquire what people need. Neighbors, for instance, may need help cleaning their house, walking their dog or delivering a package from the next county. If you have the skills and commitment to complete these tasks, offer your services at the right price.
Alternatively, you could open up your computer and make money online. Use your skills to write blog content for clients, become a virtual assistant or start a podcast. As long as you have the technological know-how, passion and skills, you can make some extra cash on the side in your spare time.
Consolidate Your Debt
Carrying multiple balances is a barrier to reaching your money goals. If you still have outstanding debts, commit to getting your debt under control for 2021.
You can achieve this by consolidating most or all of your debt to one place. This way, you only have to tackle just one repayment term and one interest rate.
Do a No-Spend Challenge
This challenge involves not spending anything (not even a single penny) for a particular period. Begin by assigning a “no-spending day” for a particular day in the week. Don’t take out your wallet or credit card for anything.
If you need to eat something, you can prepare meals in your kitchen. Do not order takeout or dine in the nearest restaurant in your local area.
By doing this challenge, you can identify the expenses that are necessary for your household and take steps to address your non-essential spending habits.
When you sit and write your 2021 financial resolutions, keep these money tips in mind. Look at the coming year as an opportunity to start fresh with your finances, remedy old money mistakes and achieve major financial milestones.