4 Steps To Hit Your 2021 Financial Goals

Due to the Covid-19 pandemic things may seem hopeless right now but I promise you there is light at the end of the tunnel. When that bright future finally arrives, you’ll want to be prepared not only mentally but financially as well.

And what do you want in that future? To be debt free? Have a solid emergency fund? Enough money for a down payment on a home? If you want to reach any of those goals, you will need to start planning. Thankfully, there is enough time to lay out a plan right now and the 4 tips below will help you build it out.

• Prioritize Your Financial Goals – It’s very simple. If you don’t know what you want to achieve then you can’t build towards anything. So lay out your needs and wants so you can assess what’s most important. Then you’ll have a clearer picture of what goal will be funded first.

• Set Target Dates – It always helps to have a goal post to work from. So, if you would like to have an emergency fund of $1,000 in 6 months, you can work backwards from there and calculate how much you will need to save every month based on your current savings total. It’s absolutely okay if you don’t reach your goal in that time period.

• Know Your Money – The next step in this process is to determine where your money is being spent currently. Make a clear picture for yourself of where your money is being allocated currently and determine if some of it can be re-allocated to your goals.

• Grow Your Income – If it’s possible, we should all strive to increase our monthly income. This can be done by requesting a raise with your employer or starting a side hustle for example. Access to more funds will help you reach your financial goals faster and help you build a solid emergency fund.

Money plays a large role in our lives and if we have learned anything this year it’s that it’s good to have a solid amount stored away in savings. To gain control of your finances in the future you just need to lay down a plan you can work towards. From there you can hold yourself accountable and make 2021 your year.