7 Financial Planning Resolutions to Make in 2021

Over the past year, we’ve all been reminded of the importance of preparing for emergencies. Now, it’s time to put those lessons to work. The following resolutions can help you get your finances in order now, so that you’re better prepared to weather any storm that comes your way in the future.

Diversify your income options. How can you expand your career opportunities, in order to find greater job security? Consider revamping your resume, taking some classes, getting certified in a new area, or venturing into a side job. Diversity in your experience and skills can help you navigate an uncertain job market.

Examine your priorities. What is your top priority each pay period? If you didn’t answer “myself” then you might need to rearrange things. Arrange your budget so that you prioritize retirement and personal savings, and then pay for everything else.

Beef up your emergency fund. You need several months of expenses set aside in a savings account for emergencies. Trim your expenses and divert the extra cash to that cause, until you can build up a reasonable cushion.

Save more for retirement. If you receive a raise, surprise windfall, bonus, or some other extra money, consider your long-term priorities. Yes, it’s tempting to spend the money on something you want right now, but you should be aiming to make the maximum contribution to your retirement account each year. If you aren’t doing that, divert extra money toward that goal.

Tackle your debt. Make a plan to prevent any added debts this year and stick to it. In the meantime, investigate ways to pay down credit card debt once and for all.

Examine your insurance needs. Life insurance should be assessed every two to three years, as your circumstances change, to make sure your policy still suits your needs. You might also consider disability insurance or other options as applicable to your situation, so that you’re prepared for whatever life throws at you.

Schedule a meeting with your financial advisor. It’s time to examine both your long- and short-term priorities and decide how to best meet your goals. Give us a call to schedule an appointment so that we can help identify all of the opportunities available to you.