Setting up a financial plan of attack for 2021
When it comes to new year resolutions, the most valuable could be to resolve to be more financially secure. Perhaps the best way to make this resolution stick is to establish one or two simple 2021 financial goals.
Financial goals are different for everyone. A lot is determined by your stage of life and your family’s needs. But it’s always good to take some time to consider how your financial needs have changed or evolved over the past year, and determine new ways to achieve your goals. A new year is the best time to establish a new plan.
How to set your financial goals
The best thing about financial goal-setting is that it gives you motivation to put these goals in motion and a strategy to bring them to fruition. Without goals, we all tend to wander around in circles, putting off until tomorrow what we can achieve today — or at least what we can achieve in 2021.
Hopefully, the financial planning you put into place for 2021 will also work to serve you long-term on your road to financial independence. But, it’s important to establish some doable, bite-size goals for just the next twelve months. This way, when 2022 rolls around, you can puff up with pride and say, “I made a difference this year,” and be enthusiastic to continue into the future.
Financial goals can be categorized into three groups: savings, investments, and spending interests.
Short-term financial goals can include saving for a vacation, saving for retirement, paying off a credit card or debt, buying a new appliance, or updating a kitchen.
This could be the year that you:
• plan a budget and stick with it
• make a strategy to pay off your student loan
• open a 401(k) or Roth IRA retirement account and contribute to it steadily
• save for a down payment on the car of your dreams
• say goodbye to credit card bills and boost your credit score
• faithfully contribute to an emergency fund that will give you valuable peace of mind.
With a simple plan in place, and a dollar amount in mind to contribute weekly or monthly, you can reach your goal by year’s end.
Establishing clear goals makes it so much easier when you’re faced with decisions about spending your money. For instance, knowing that you want to save money for a new car makes it easier to spend less on take-out food or a new pair of shoes. In fact, you might want to put a stickie note on your steering wheel that says “New car? Or a latte?” to remind you to get out of that drive-through line. Put a photo of the new refrigerator you’re saving for on the door of your old fridge. It could inspire you to find something inside to make for dinner rather than having take-out delivered.
Simple first steps to meet your financial goals
The year ahead is full of possibilities for improvement for each of us. Your friends at Regional Finance are here to help you meet your personal finance needs and goals, whether you’d like a fast, fixed-rate personal loan to help consolidate your debt or you’re looking for information about how to keep your budget on track. You can start your loan process here by prequalifying now online or call your local branch. We all wish you a happy, healthy and prosperous 2021.
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You can prequalify for your loan online in just minutes. Or, if you prefer, call or stop by your local branch. Our loan specialists can answer any questions and help you fill out an application for the personal loan that fits your needs.