Five New Year’s Resolutions For A Stronger 2021
Updated: Jan 6, 2021
With the end of 2020 in sight, we are all starting to think ahead to 2021 and what might come our way. There are a lot of things that may continue to be outside of our control, but the new year provides a great opportunity to start fresh with what we can control - healthier habits for your mind, body and bank account.
Here are 5 New Year’s Resolutions to help promote financial health and wellness in 2021.
FINANCIAL RESOLUTION #1: DO A “DEBT DETOX”
Many people have had to turn to using high interest credit in order to get through the tough times 2020 brought. If you were financially affected by COVID-19 and had to leverage unsecured debt like credit cards, or even borrow from very high interest lenders, a good way to start 2021 is by refinancing that debt into your mortgage. Since mortgage rates are at an all time low this can offer significant savings. The important thing is to eliminate your unsecured debt; refinance to start fresh.
FINANCIAL RESOLUTION #2: SET YOUR GOALS
Keep moving forward. Financial goals come down to two things; you are either trying to save money or trying to pay down debt. Having that as a framework is important. Ask yourself if you want to save or pay off debt. And yes, you can do both at the same time, if you plan your year accordingly.
FINANCIAL RESOLUTION #3: BOOST YOUR CREDIT SCORE
Try to use only 30% of your available credit, and do not ever miss a payment. You can set reminders in your calendar for one week prior to your payment dates.
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FINANCIAL RESOLUTION #4: REFLECT ON YOUR PERSONAL CHALLENGES AND HOW TO OVERCOME THEM
Self-reflection can help bring awareness to barriers and challenges that are holding us back. Reflecting allows you to delve into problems and situations, and helps you develop solutions. This process is important for personal growth. Once we are aware of these aspects of ourselves, we can make the positive changes necessary for a better sense of well-being.
FINANCIAL RESOLUTION #5: MAINTAIN FORWARD MOMENTUM EVEN IF YOU HAVE SETBACKS ALONG THE WAY
Do not be afraid to start over on the same goals as previous years. Think of it as a reset button. If COVID-19 has taught us anything, it is to be prepared. If you have credit card debt, try to pay more than the minimum balance to avoid suffering undue financial anxiety. You are in control of your money – it is not in control of you!
My New Year’s Resolution is to stick to my financial plan and budget, and to keep myself accountable.