Financial Resolutions for the New Year
Thankfully, 2020 is almost over and the New Year is just around the corner. The time has come to start making the dreaded New Year’s resolutions. The most common resolutions are eating healthier, exercising more, and losing weight. While these are great goals to set for yourself, it is more important now than ever to make sure your finances are in line during this time of uncertainty. Here are a few ideas to help you reach financial peace of mind in 2021.
Evaluate Your Situation
Many people stick with the same financial institution for years because it is something that they are used to and comfortable with, but those accounts may not be giving you the best bang for your buck. Every financial institution offers something different — better rates, payouts, rewards, etc. and what you have now may be outdated and not earning what you deserve. Take a moment to look through your accounts and compare them with other financial institutions — you may find out you can get more for your money or more from a new financial institution.
After making sure you are earning what you deserve with your accounts, take a moment to set some financial goals for the 2021 year. Whether you are looking to buy a house, buy a car, pay off some debt, or just start saving in general — a goal is a goal, and having (at least) one means you are trying to better yourself and your financial situation. Sit down and think about how your finances have been affected since the pandemic, and plan for how they could possibly be affected in the new year. Knowing where you want to be is a huge step in having financial peace of mind.
In a year of uncertainty — when the possibility of being out of work and without a steady cash flow is higher than ever before — having a safety net is crucial to feeling secure in your finances. Look at the income you have coming in each month, pay your bills, and then set aside a portion of what is left for savings. Whether it is $1,000 or $10 — any amount put into savings is a step in the right direction to being prepared, should an emergency pop up.
Kat’s Money Corner is posted in the Kansas City Star every week. Kat Hnatyshyn, when not blogging or caring for her little ones, is a manager with CommunityAmerica Credit Union. For more financial chatter, follow us on Twitter @CommunityAmerCU.