Get 2021 on Track: Make it a Financially Fit Year

April is National Financial Literacy Month and the perfect time to turn 2021 around and make it a financially fit year. Whether you’re saving for a new house, new car or future endeavors, here are some tips to getting on track:

1. Write down your goals

Put your goals to pen and paper – use it as a daily reminder to stay focused. Want to own a home by the time you’re 30? Pay off your student loan debt in 10 years? Write it down and continually monitor your progress.

2. Figure out your priorities

Food, housing, health-care, and insurance are generally must haves. Non-essentials like eating out, shopping for fun, vacations, and other extras can be purchased in moderation if it fits into your budget. Start by deciding what is most important and prioritize spending categories accordingly.

3. Assess your current spending habits

Start by reviewing your monthly statements from the previous few months to see what your money has been spent on and where you can cut back. Money splurges for daily Starbucks, happy hours, and meals out may seem small at the time, but they add up. Look for patterns to see where you can cut back on a daily, weekly, or monthly basis.

4. Keep it simple

A budget can be overwhelming if it’s too detailed or unrealistic. When building your budget, be realistic about your lifestyle and habits. If tracking your daily expenses is too burdensome, track them weekly, monthly, or by paycheck (generally bi-weekly) instead. Utilize your savings account by portioning off your paycheck into money you can and can’t spend.

5. Plan for the unexpected

Budgeting for emergencies, like car or house repairs will provide a buffer without blowing your budget.

6. Avoid temptation

Just like dieting, budgeting requires willpower and the ability to abstain from spending. To stay on track, throw out catalogs and unsubscribe from emails from your favorite stores.

7. Share your goals

Get buy-in on your budget from your spouse or roommate, and be open with family and friends about your goals. The more transparent and comfortable you are about talking to others about your budget, the more successful you will be. You may find as you share how careful you are about your spending; you will attract supportive friends and family members who are in the same boat. You may even start saving together.