Get financially ready for 2021 with these helpful tips.
Federal Budget 2021-22Getting financially ready for 2021. Many people this year have had a bad time when it comes to finances, so naturally many will be hoping to improve this situation in 2021. The good news is that there are various ways in which you can cut costs and improve your finances in the coming year.
Reading through the tips in this article will enable you to gain some inspiration and ideas and will help you plan ahead so that you can successfully improve your finances.
1. Be Smart
The first strategy to help you jumpstart your new year is to set S.M.A.R.T money goals. S.M.A.R.T is an acronym that stands for Specific, Measurable, Achievable, Realistic and Timely.
Lets start with Specific and Measurable. Your goal may be to “spend less or invest more”. That’s a great goal, but it is not specific enough. If you instead said, “I will save or invest $1,500,” that’s more specific and measurable.
Now let’s look at the Achievable and Realistic component. Using the example, if you said “I will invest $125 from each pay directly into my savings or retirement account or towards paying down a specific debt.” that is likely achievable and realistic and timely.
2. Stop unnecessary Subscriptions
A lot of people do not realise that they are still paying fees on subscriptions and services that they no longer need or use. This could be anything from gym memberships to magazine and streaming sites subscriptions.
While the monthly fee for some of these services may not be all that high, once you add them up, it can come to a surprising amount. So, make sure you go through your outgoings to establish exactly what is going out each month. You can then make cutbacks and cancel services and subscriptions that you do not need.
3. Find Fun for Free
Try to go 30 days without paying for any kind of entertainment and find all the free things in your area. You can do a Google search for “Free activities on the Gold Coast” to see what’s happening.
Use board games, video games, bike, sports equipment, etc that you already have. That’s just a few ideas to get you started.
4. Sell 5 things in the next 30 days
Make some money with this 30-day money challenge. Challenge yourself to sell at least 5 things within the next 30 days that you don’t need or use anymore. Use Facebook Marketplace, Gumtree or any other method to get 5 items sold.
5. Cut Auto Insurance Costs
If you drive, you probably face a range of expenses over the month, and one of highest expenses is car insurance.
Many people spend a fortune on auto insurance premiums, with some paying way over the odds. So, you should try to reduce the amount you pay for your cover, as this can equate to big savings. Buying car insurance online makes it easy for you to find the best deals and cut the cost of your coverage.
6. Buy Store Brand
Can you go 30 days without buying name brand food? This challenge is all about the less expensive store brand version of all your favourites.
You might decide that you don’t mind paying more for specific brands, but I bet you’ll find a few items that you can’t tell the difference or where you actually like the store brand better!
7. Zero Eating Out
Are you feeling brave? How about 30 days without going out to eat at all. That means all homemade meals. If that’s too crazy to wrap your mind around, what about challenging yourself to only eat out once a week during a month?
8. Meal Plan
Dive into meal planning and figure out what works best for you.
Meal planning is the #1 way to save money each month. Plan your weekly meals and only buy what you need for those meal. This is also a great way to reduce waste.
Pull the cash from your Living Account
Finance gurus recommend that you use cash all the time instead of debit or credit cards. It works wonders for a lot of people, so give it a try.
Work out your weekly budget and take that amount out of your living account. Each time you remove money from your account it will keep you focused on how much you have spent and how much you have left.
9. Make 2021 Your Financial Year
In terms of finances, 2020 has been a terrible year for many people. However, you do not have to let 2021 follow the same path. By taking these tips on board and planning ahead you can help to make 2021 your year when it comes to finances.
By improving your income as well as reducing your outgoings, you can make a big difference when it comes to money. This means you can enjoy a life that is far less stressful, and you won’t be worrying about money all of the time. It also means you can benefit from more disposable income with which to improve you life quality.
10. Put Your Willpower to the Test
Put your willpower to the test by buying just the necessities for one month. You’ll be amazed by how little you actually need. You’ll be able to identify the things you don’t actually need, but like to have.