We all want this terrible 2020 to end … but for what exactly? 2021 has inevitably become a symbol of hope for a shaken world, which is very valid but, when it comes to economics, the good vibes must be accompanied by something else.
Calm down, no one will scold you for not saving a dollar during what we have this year. Actually, the intention is to share actions with smart goals that will help you clean up your household finances in the weeks remaining to 2020, all with a view to a new year … This is our list for the twelve financial bells:
1. End with the least debt possible. We know that some of them extend into the next year (months without interest or phone plans, for example), so we will not fall into the unrealistic request that you eliminate them completely. Living with debt and knowing how to manage it is part of today’s financial life. Just try to catch up and think twice about making a new commitment.
2. Take advantage of the bonus. It is time to get the most out of this “extra” income. A good option is to allocate 50% to pay debts, 30% in personal expenses (clothes and gifts so requested at the end of the year) and 20% to allocate it to savings.
3. Create a contingency fund. Saving should have different objectives, depending on our dreams and needs: vacation, buy a new computer, a new room … but starting to save money for eventualities, such as unemployment or accidents (or pandemics), should now be a priority.
4. Maintain the house. Solve today’s imperfect so as not to pay for tomorrow’s deep repair. If it is within your means, invest in household arrangements that allow you to start 2021 with one less slope.
5. Compare prices of gifts. Today that everyone has optimized their online sales it is much easier. Look for the products you need in at least three stores, you will be surprised how much you can save.
6. Pay the credit card. Nothing like reaching the December payment deadline and paying off the entire debt so as not to generate interest. If that is not possible, pay as much as possible because credit card debt is one of the most expensive on the market. Any weight you add to this item is worth gold.
7. Do not abuse the credit card. Because there is no point in paying the total of your account statement in December, if during the holidays you squeezed your credit limit on purchases for months without interest. The idea is to see the 2021 horizon without financial clouds.
8. Protect my health and that of my family. The ideal is to have insurance for major medical expenses to cover them, but having affiliation to a health system such as IMSS or ISSSTE is of course also helpful.
9. Dust off my Afore account statement. How much money do you have in your retirement savings subaccount? In housing? And in the voluntary savings subaccount? In this same document are the afores that offer the most returns and the web pages where you can find out how valuable it is to save on this instrument.
10. Resist the temptations of the holidays. These parties will surely be different from other years but from The Good End to New Year’s gifts, it is the season when we can fall into the mistake of indiscriminately opening our wallet. We are talking about avoiding unnecessary expenses, those that actually compromise your quality of life in the future.
11. Grow in my financial control. Take a notebook and draw two columns on a sheet of paper, on the left side put your income and on the right your expenses, you can also choose a free application that has this functionality, that is the best beginning of the new life of your personal finances. If you are ahead of that, take the next step and learn that concepts like “cash flow” and “good debt” are nothing to write home about.
12. Plan how to generate more income. Having some money saved is no longer enough, you must put it to work: analyze the possibility of making your first investment or that that business idea that has always haunted your mind begins to advance.
That you checklist fill yourself with “popcorn” and may 2021 be a great year, one in which we all recover and come out stronger.
Digsmak is a news publisher with over 12 years of reporting experiance; and have published in many industry leading publications and news sites.