It’s no secret that managing money is harder than ever due to the impact of the COVID-19 pandemic. But, this doesn’t mean that it’s impossible to set attainable goals before the end of 2020. And the best time to get started is today.
Not quite sure how to begin? We’ve got all the info you need.
Let’s explore everything you should keep in mind when it comes to the finance goals you should consider.
- Fluff Your Emergency Fund
It’s highly recommended to have access to at least 3 to 6 months’ worth of living expenses at all times. While this is a significant amount of money for most families, it’s still something that you should heavily prioritize.
If your emergency fund is a bit lacking, you should aim to contribute as much as possible before the end of this year.
- Contribute Toward Retirement
Even if you’re still in your 20s, it’s imperative that you start planning for retirement.
Each year that you don’t invest could cause you to miss out on exponential growth. Opening a retirement account also allows you to simultaneously create a safety net for the future while getting the most out of every dollar you put away.
Even if you have additional financial obligations to take care of, don’t neglect your retirement fund.
- Tackle Old Debt
Financial hardship becomes significantly amplified if you have a large amount of that. In some cases, unexpected expenses become completely unmanageable.
Similar to how cultivating an emergency fund can help protect you in the future, so can eliminating the amount of money that you owe. These two practices combined will put you in great shape for 2021.
- Create a Budget for 2021
Everyone can benefit from creating a budget, but there are countless individuals who don’t have one at all. Fortunately, the perfect time to create a budget for 2021 is within the last few weeks of 2020.
You should aim to prioritize expenses on needs while minimizing as many unnecessary purchases as you can. From here, you can use the extra money that you save to contribute towards your retirement, emergency savings, debt, etc.
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- Explore Additional Revenue Streams
Developing sources of passive income is a great way to help you manage your upcoming expenses and other financial obligations. It can also be an enjoyable process to partake in.
For example, someone who is artistically-inclined has countless opportunities to use their creativity to make money. This could include digital artwork, paintings, etc.
So, take a moment to consider your favorite hobbies and then try your best to formulate ways you could use them to make money. Under the right circumstances, you’ll find yourself with a significant amount of extra cash each month in exchange for a bit of you’re free time.
It Can Seem Complicated to Set Attainable Finance Goals
But the above information will make the process far smoother. From here, you’ll be able to ensure that your finance goals are well within your reach before the end of the year.
Want to learn more info you should keep in mind? Be sure to explore what the rest of our blog has to offer.