Common Financial Resolutions
A financial New Year’s resolution is nothing new. If your New Year’s resolution is to finally get your finances in order once and for all, then you are in luck. You can beat the odds of failing at your new goal one month in and instead, take the bull by the horns. These goals are a bit lofty, but you can achieve them if you take a proactive approach. If the New Year means new you and new financial goals, here are the 6 common financial resolutions you need and how to achieve them.
Get Out of Debt
Possibly the most painstaking task of your new year could be trying to become debt-free. For most people, this just won’t happen overnight (just like your resolution to get into shape). What you need to realize is that getting out of debt takes time and a detailed plan. You can’t just wish for it and hope you do a good job.
Getting out of debt requires a detailed plan of how you will save more money in the new year while making sure the extra cash goes toward debt. This means you should stop eating out, start cutting unnecessary bills, and ease up on those fancy coffee drinks. Is there a monthly recurring bill that you could live without for 3-6 months? Remember, your current budget does not have to be set in stone. Track your current expenses and see where you are throwing away money.
For many people, apps also help keep them on a budget and save up to carve away at their debt. Consider using one of the following apps to keep you on track in 2021:
Pay Off Students Loans
Another huge financial resolution you can make for 2021 is to finally pay off your student loans. Instead of waiting around for a politician to wave a magic wand to erase your debt, take control yourself. Yes, it might feel like it will take forever to pay off your student loans, but you can transform 2021 into the year where you focus on this debt.
A few ways to approach this include:
- Lower your interest rate to prevent more mounds of debt stacking up.
- Learn what your repayment options are so they can fit into your current budget.
- Stop applying for deferments and make payments now.
Start a Side Hustle
A great way to increase your income to put towards your debt is to finally start that side hustle. Whether you want to try selling Scentsy or drive for a rideshare program, now is the time to start. Most people can handle a part-time job and again, it doesn’t have to be set in stone. You can make a goal of working extra for the next 6-9 months to see where it gets you with regard to your debt.
In addition, you can work towards adding more income by selling your things online. Consider using apps like LetGo and DeCluttr to get started. You might be just sitting on money you didn’t know you had!
Get a Raise or New Job
A challenge for many people is to outright ask their boss for a raise. If you have not had a review or a raise in months, then now is the time to ask for one. Some employers do not keep up well with reviews, so it doesn’t hurt to ask if you are overdue.
Additionally, it doesn’t hurt to shop around for a new job that pays better right off the bat. This might not work for everyone, but scrolling through job ads might be a good place to start.
This might seem like an odd financial goal, but volunteering is a great way to give back freely to your community. You could choose a non-profit that resonates with your interests or check out what opportunities your church might have. Depending on what you choose, it could also be a good opportunity to add it to your resume. This is a great way to add new skills to your work history.
Save For That Dream Vacation
Do you have a dream destination on your mind? Many people fantasize about jet setting across the states or the world to a new, exotic location. If this sounds like you but not like your budget, you can still make it become a reality.
First, make up a mock budget of what the trip would cost. Make sure to include airfare, lodging, food, excursions, and any extras to the list. Now see if there are places where you can cut and scrape. This means maybe not traveling during the busy season like spring break. You can dream and save at the time.
Financial goals for the new year are definitely popular, but they are also achievable. You must sacrifice some things to get ahead altogether. It may not be easy but it will be worth it.