Consider These Money Goals to Boost Your Finances This Year
Money is a touchy subject for many of us. After a turbulent 2020, we were reminded of the importance of having a savings to keep us afloat in the case of an emergency. For too many Americans, the COVID-19 was a wake-up call. A reminder that being financially responsible has many benefits. Peace of mind is one of them.
If improving your finances is at the top of your New Year’s resolutions list this year, you should be proud of yourself. The first step to fixing a problem is acknowledging that there is one, to begin with. Below are five goals to consider to boost your finances this year.
Create a budget
Creating a budget is the first, and sometimes scariest, part of your financial journey. This is the step where you’ll write down all your income and expenses. Yes, all your expenses. This step is usually tedious because you’re forced to become aware of where your money goes every month. It’s also an empowering step because you get to choose where your money goes. Every day, you vote with your dollars. So, whether it’s a necessity or a splurge, you have the power to decide.
Snowball out of debt
The thought of getting out of debt can be stressful. Depending on how much you owe, it can be overwhelming to think about paying off your balance. One of the reasons I love Dave Ramsey’s snowball method is that it encourages paying off your debt one bill at a time, starting with the smallest one. The idea here is to tackle the small items first and build momentum to check off your debt one by one.
Saving is one of the most important steps to reaching financial freedom. Unfortunately, it’s also one of the last ones on people’s list. That’s because we tend to spend first and save last. If you find yourself living paycheck to paycheck, this usually means you never have anything left to save. Set a goal and work towards it every pay cycle. Save first, spend second.
Learn about finances
One of the reasons money remains such a touchy subject for many of us is because we rarely learn about it. For most of us, finances were never something we learned about at home, let alone school. If this is the case for you, know you’re not alone. It’s never too late to learn. There are countless courses and webinars around financial literacy. Find one that works for you and start making money moves.
Schedule money dates
Whether you’re in a relationship or living your best single life, money dates are a great way to stay on track during your financial journey. The idea behind money dates is to establish a budget and check in on your spending regularly. My husband and I do it weekly, but you can do whatever works best for you and your needs.