The 3 New Year Resolutions That Make Cents for You in 2021
Beyond Finance TeamPosted on Jan 29, 2021
It's no surprise that many Americans – 97 million, in fact – started 2021 with a resolution. And many of those were centered around money, from getting a promotion to success out of a side job.
These days, instead of earning it or spending it, people want to save it. Yet, according to the same survey, fewer than 40% "expect to keep their vow for a full year." Money management is a need for a living but not a skill many acquire in life.
Fortunately, our experts at Beyond Finance know about personal finance and debt relief. They have three ideas you may want to write down and etch into your own 2021.
1. Make savings automatic
Many people who do not have a disciplined sense of money management find difficulty putting a small portion of their income back in savings. By making that process automatic, you won't have to think about it. Find out if your employer can divide your paycheck into different accounts. Automatic transfers make it easy for you not to miss what is being saved.
2. Work on your credit score
Your FICO score is one of the most important numbers you may not have committed to memory. Unlike your driver's license or social security, this number means money. When was the last time you checked your FICO score? If you are getting the collection calls, you may want to look. FICO stresses anywhere from 690 and 719 is "good." If yours is not in that range, look at a couple of things:
- Paying bills on time and in full
- Lower how much money you have borrowed versus credit lent to you
- Limit or stop applying for new accounts
3. Enjoy your groceries
According to the USDA, most people spend an average of 9.5 percent of their disposable personal income on food. The problem is that some of those groceries go bad or unused because those same people spend an average of $3,000 dining out, according to the Bureau of Labor Statistics. Instead of driving thru, consider staying put and saving a little money. You may be surprised how much you don't spend.
Each of these resolutions is simple to start but difficult to finish. During the pandemic, Americans have been furloughed from work or even lost their job. Many are searching for ways to gain money instead of thinking of ways to save it.
That's why these ideas make the most "cents" of them all. Focus on what you have, and you may be surprised what you get in 2021.