2021 is Finally Here! Your New Year’s Financial Goals

If we’ve not learned the basics of being immensely grateful for the simple yet important things in life after surviving 2020, then we’ve clearly failed “Life 101”.

Illness and death on unprecedented levels due to COVID-19, food insecurity, personal debt issues, racial unrest, political drama, massive job loss, and business closures are but a few of 2020’s maladies. Although we are still dealing with these issues at the beginning of this year, there are (and will continue to be) positive shifts as 2021 moves on.  Having New Year’s financial goals can certainly be a positive path to get and keep your finances moving in the right direction!

Here are a few positive and powerful personal New Year’s financial resolutions to not only adopt for 2021 but the long-haul:

1. Pay Yourself First!: This is not being selfish-minded; it’s about being financially responsible to yourself and your loved ones. If you are blessed to have employment or any form of income, then start putting money away in a savings vehicle (i.e., a bank, credit union, money market account). I don’t care if it’s just $5.00 each time you get paid; it beats NOTHING! Try to build up an “emergency” fund of at least $1,000. That may sound like a lot right now, but you can achieve this New Year financial goal sooner than you think. If you just put away one dollar every day for a year, you’d have $365.00 by the end of the year ($366.00 during a leap-year). The point is, having savings will be a great buffer, not IF emergencies happen, but WHEN they happen!
2. Get Rid of Debt!: Especially credit card (consumer) debt. Paying using credit cards is insidious: it’s so easy to pull out the plastic that, unless you are disciplined by keeping in mind that you should pay off your balance(s) each month, charges rapidly grow. Paying off the minimum each month isn’t the answer either, because (depending on the number of your charges), you could be paying a huge amount of interest over the years. Make it a New Year’s financial goal to pay for consumer items in cash. Determine whether something is truly a need or a want. Getting out of debt is a process; it won’t happen overnight. Determination will, however, pay off in the long-run.
3. Start a Budget!: Please create a budget as one of your most important New Year’s financial goals.  Some folks have said that they don’t make enough to have a financial budget – you can’t afford to go without having a budget! Especially when money is tight, we have to be more aware of where our money’s going. Many great free online budgeting tools can help. One great website to help is Mint.com. Navy Federal Credit Union has excellent, free personal finance and budgeting resources that anyone can use. Also, its Knowledge Center provides consumer education on such subjects as “Taking Charge of Credit Cards,” “Improving Personal Finances,” “Buying a Home,” “Saving for Retirement,” and more.
4. Downsize Your Spending!: Frugal is a beautiful word! I didn’t say “cheap.” If you are used to doing without certain luxuries during this past year, and you have a roof over your head, food in the ‘frig, and clothes to wear, then you’re doing just fine. It gives us pause for thought over what’s really necessary. In some cases, you don’t even miss that latte’ purchased every day – ok, I’m hitting bone, but you get the point. Finding ways to save can be so positive and can actually be fun; you will feel good about the accomplishments you’ll be making.
5. Please Don’t Be Hard on Yourself! You and others may be going through unimaginable financial, psychological, social, physical, and spiritual stress and doubt during these unprecedented times. I encourage you to take steps at the pace that works best for you. Seek free financial counseling from your place of worship (many have been professionally trained to help people with financial stress). The Consumer Credit Counseling Service (CCCS) is an excellent free resource for you. As an NFCC (National Foundation for Credit Counseling) nonprofit credit counseling organization, the CCCS can sign up for free advice from one of their credit coaches. They offer debt management plans. Their free, confidential session provides you with a workable budget and expert advice on managing personal finances and reducing debt over time.
6. Appreciate Life!: Being grateful for your life, your loved ones, giving back to society by helping others, and, become a better steward of your finances.

Here’s to a more hopeful, balanced, and abundant New Year!

 

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