Make 2021 a Better Year with These Financial Resolutions
If you’re like us, then you’re probably hoping that 2021 will be a better year. To make that happen, however, requires action from your end. Here are some suggestions that can help make the coming year a more fruitful one.
Save more consistently.
If saving has become more of an afterthought than a priority, then it’s no wonder your savings account leaves little to be desired. In the coming year, be strict about your personal obligation. Instead of focusing on your goal amount, work on your ability to remain consistent. You don’t want another 12 months to go by only to be filled with regret. Not sure how to stay on track of your saving schedule? Here’s an easy way to save more on a weekly basis.
Update all insurance policies.
When was the last time you reviewed your insurance policy? Do you think that it’s still enough to cover all your loved ones’ needs? If your insurance policy earns dividends, will those better serve you invested elsewhere? It’s common for people to forget all about their life insurance policy once they’ve signed the contract, but it’s healthier to keep tabs on all aspects of your finances. This way, you can start the new year knowing that your family is well taken care of.
Diversify investments more.
You already know not to put all your eggs in one basket, but how much do you really follow this old adage? If you’re in a position to do so, consider exploring other varieties of investments. If you’re curious about Bitcoin, for example, you can read my thoughts about it here. If you want to start a small business but have never done so before, this cautionary tale might prove useful. If you want to get into the stock market, here’s a preliminary guide.
Increase net worth.
If someone were to compute how much you’re worth, would you be happy about the number you’ll amount to? If the answer is no, then perhaps 2021 is the year to change that. Begin by calculating your current tangible net worth first. Follow this formula: Tangible Net Worth = Tangible Net Assets – Tangible Net Liabilities – Intangible Net Assets. Tangle net assets simply refer to assets that are convertible to cash. Knowing your baseline can help you create a roadmap to a higher net worth.
Pay outstanding debts.
If you have a credit card bill that has gone unpaid for quite some time, make it a point to clear it as quickly as possible. We’re not talking about monthly expenses, but debt that has been carried over from your last bill and the bill before that.
Live more simply.
2020 has proven that we can live without many luxuries. We’ve learned to let go of some of the things we didn’t really need and have seen value in making things from scratch. In the coming year, let’s continue on this trajectory. Let’s save more, spend less.