Top Money Resolutions for 2021

Photo by Sharon McCutcheon on Unsplash

New Year is the perfect time to reset your mind and start new goals.

One of the best ways to start the year right is to have some financial resolutions you can set and follow, for you to have a good cash flow and stable financial health for the rest of the year.

Here are 4 Money Resolutions you can challenge yourself with this 2021.

  1. Set your goals – and don’t forget them.

    It’s easy to write down and say “Spend less. Save more.” But without specific goals in mind, straying away from saving up can be way easier. How do you know how much to save if you don’t know what you’re saving for? What are your life goals? What steps can you take in 2021 in order to reach them? Are you saving for your future home? For an investment? For your dream business? For early retirement? You should start by writing all your goals down, and then organize them in terms of timing: start with 1 year, 3 years and 5 years. Plan your goals accordingly and write how much you’re willing to save for each of them every month or every pay day.

  2. Save more.

    In one way or another, every usual New Year’s resolutions include “saving more money.” But when pandemic struck the world in 2020, how did you cope up? Were you still able to save that much or have you touched your savings as well?

    Having a safety net, even a small one, is incredibly helpful. However, don’t think of it like “saving.” Think of it as paying your future self. Do automatic transfers from your paychecks and don’t think about the money transferred to your savings account as well. Out of sight, out of mind.

  3. Create a budget plan and stick to it.

    You might have heard a couple times or more that following a budget is a great way to spend less, save more, and avoid costly debt. And while budgeting isn’t a difficult thing to do per se, the more strategic you are in your approach, the more successful you’re likely to be.

    Once you’ve chosen your financial goals for the year, you need to create a budget plan that’ll help you achieve them. The best way to gain financial independence is to learn how to budget effectively.

    Here’s how to do an effective budget plan, step by step.

    • Keep track of your cash flow for 30 days. This means writing all your income streams and expenditures and comparing them to see if you’re left with a profit or loss at the end of each month.
    • Next, you have to categorize your expenditures as either variable or fixed costs. Fixed costs, as the term implies, are more difficult to adjust and include fixed amount expenditures such as rent and utility bills. Variable costs cover expenditures that are flexible such as groceries, entertainment subscriptions, and eating out.
    • Once you’ve separated your expenditures, you need to identify any variable costs that you could cut back on. Maybe instead of going out for coffee thrice a week, you could opt to brew your own at home and save a few dollars more.

      Photo by Nathan Dumlao on Unsplash

    • Then, using the projected savings you’ll make from cutting back on these variable costs, decide a specific amount of money you’d like to contribute to your savings each month.
    • Make sure your budget is realistic. Review your budgeting performance regularly and make adjustments where necessary. Surprise expenditures can be quite common on some months than the other, but don’t let some fluctuations in your savings demotivate you, accept that all of those experiences are part of your learning process.
  4. Prepare for the Unexpected.

    Photo by Greg & Lois Nunes on Unsplash

    Did you know that a lot of people still don’t have an emergency fund?

    According to Investopedia, an emergency fund is a readily available source of assets to help people navigate financial dilemmas, such as the loss of a job, a health emergency, a major repair of the house or a car – not to mention the kind of major national crisis the coronavirus pandemic has created.

    An emergency fund should contain enough money to cover between three to six months’ worth of expenses, according to most financial planners.

    Ole Platform and Global ID wish you the best financial health for 2021. Ole Platform is the fast, safe and hassle-free way to pay on sites, in apps, and in stores using Ole Platform account and Ole Platform Visa Debit Cards. It utilizes Global ID as its KYC platform.

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