The year 2020 has been a year that many of us cannot forget. Let’s be optimistic and good times are hopefully there to stay in 2021. 2020 has been a financially unstable time for most of us.
It has taught me a lesson to be financially disciplined to deal with any unpredictable situation. NOW is the time. So let’s get ready and prepare ourselves for the perfect financial year ahead.
Here are a few tips to keep you financially fit and keep track of your finances in 2021:
1. Prioritizing financial goals
If you manage your finances well, you will always be backed up to efficiently face any unpredictable situation.
There are various aspects of managing your finances, such as paying off your debts, saving for your new home, or taking care of your family’s health.
To cater to your financial needs, it is essential to prioritize and make financial goals well in advance as it provides all crucial targets for your cash.
Budgeting your finances can help you stay aware of your necessary spending and eliminate unnecessary expenditure. It helps to identify any free cash.
Many online websites and banking apps provide budgeting facilities to give you a clear picture of your finances. It provides a detailed view of your financial sheet, mentioning the cash incomings and outgoing with other required data.
3. Check on memberships and subscriptions
There are many subscriptions that we go for without having any use.
One of the important ways is to go through your financial sheets and bank statements to identify all the subscriptions and memberships that you do not need and are no longer in use.
You can cancel all those to save a fair amount of money.
4. New year deals
New Year is the best time to encash all the offers and discounts available. Many credit card companies and banks offer lucrative interest rates on your plastic money.
You can go for a credit card during this time of the year to avail yourself of benefits.
5. Tackle the expensive debts first
Mortgages, loans, overdrafts, and credit card balances are forms of loans that have to be paid on time to avoid penalties. Keep track of all your repayments.
The key is to track the expensive ones first to stay away from punishingly high-interest rates.
6. Good value insurance deals
Insurance is a must-have nowadays because of the dynamic nature of the market that we deal in.
Insurance includes everything from individuals to cars to homes. To save money, you can shop around the renewal time.
7. Insurance is a must-buy
Amidst all the chaos and uncertainty of lives, it is essential to get yourself insured, including your family and loved ones.
Life insurance is a must buy as they are a significant contributor towards your security and peace of mind.
8. Top up your pension
Retirement is an indispensable phase of everybody’s lives. It is essential to make your retirement financially stable to lead a peaceful life.
If you are already enrolled in an employee pension scheme, you may look for alternatives to top up your pension scheme by making a little more contribution every month.
9. Weigh all broadband providers
You may be a loyal broadband customer, but it's time to change now. You can check with other broadband operators' tariffs to switch to the best one in terms of money.
You should weigh options to get the best plan, which applies to your mobile phone operator.
10. Best energy tariffs
The concept of choosing the best and cheap broadband operators applies to energy suppliers as well. We exist in a competitive market, so it is crucial to contemplate all the options.
Many people stick to an expensive plan, but you can act smart and compare services to make significant savings every year.
11. Improve your credit score
A good credit score determines your chances for loan approval. A good credit report ensures your acceptance by all the direct lenders in the market.
One of these direct lenders' facilities is the 15-minute loans facility that requires less paperwork and instant cash.
Improve your credit score by being enrolled in the electoral register. This involves not making many credit applications and paying off your debts on time.
12. Make sure your tax affairs are up-to-date
Your tax file should be updated and correct as per the government standards. In case of status change from employed to self-employed, it is essential to file a tax return.
It is important to file your tax on time and also register online for a self-assessment.
13. Make a Will
Do not let go of your hard-earned money in vain. Make sure your money is passed on to deserving beneficiaries.
For this, it is vital to make your property free as it will also ease the administrative burden that follows a person's death.
14. Financial experiences
Experience is the best teacher. It is always beneficial to learn from your past experiences and repeat the same mistakes committed in the past.
Another way is by exchanging your financial ideas and opinions with your family and friends to get more insight into finances.
15. No spending day in a month
To be financially disciplined, you can go for no spending day every month and save money. It can be beneficial to follow, and you can encourage your family and loved ones to do the same.
It is crucial to choose your financial priorities and stick to them for a financially bright future.
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