Financial Changes To Make In 2021

The New Year often brings generic resolutions that get tossed to the wayside within months or even weeks. However, when it comes to your financial life, making and sticking to a plan is critical to your long-term prosperity. The start of the year is a perfect time to look back and look ahead.

Review Your 2020 Financial Health

• Did you stick to the financial plan you made in 2020?
• Did you end the year with an economic surplus or in debt?
• Was your final financial balance the result of outside influence or your own decisions?

Financial Changes to Make in 2021

• Set a new budget. With a year like 2020, you’ll likely need a complete overhaul to your budget, so carefully consider what you’d like to strive for this year.
• Automate your savings. Over time you likely won’t miss the money that you have safely tucked away for emergencies.
• Autopay your bills. Avoid costly late fees and have one less thing to remember.
• Increase retirement contributions. Aim to divert 10%-20% of your income even if you have to do it 1% at a time.
• Review your insurance. Look into your life insurance, health coverage, and your homeowner’s policy to ensure you’re covered well enough for your lifestyle.
• Review your estate plan. Even if you don’t have the assets or complicated financial life to require trusts and other advanced planning documents, you should at least have an up-to-date Will and a designated Power of Attorney in place.
• Check your portfolio. The stock market is likely to do some odd things as we transition Presidential power and continue to fight the COVID-19 pandemic. Review both your objectives and your risk tolerance.