We have come through 2020 stronger, together and we’re here to help you jump start your 2021 with a few financial goals from our Managing Director Bentley Ford.
Calculate Your Net Worth
Add up all of your assets and subtract what you owe. Assessing your net worth helps you understand your current financial situation and gives you a reference point as you move forward into a New Year.
Build a Budget
Evaluate your monthly income (based on take-home rather than gross) and estimate your monthly expenses. Set a reminder to review the budget each month to become more aware of the areas that need adjustments. Commit to your monthly budget and you will start reaching your goals. Need help making a budget – download our budgeting worksheet to get started!
Commit to No New Debt
When you are building your budget for the year make sure that you think of large expenses as well. If you are thinking of a home renovation or purchasing a large item that should be in your budget. Adding new or higher installment payments will derail your budget and the progress you are making.
Start a $1,000 Emergency Fund
Set aside savings in a separate bank account. Start with $1,000 and work your way up to a half a year of living expenses. Having this financial buffer will save you from acquiring debt when something unexpected comes up (car fixes, medical expenses, etc.) If 2020 has taught us one thing it is that we never know what will happen next.
Review Your Investment Accounts
If you’re investing already, you’re on the right track. Schedule time to meet with your financial advisor to review your portfolio, assess whether your assets meet the objectives of your account. Having regular meetings with your advisor will help you stay on track to reach your goals. If you are not working with an advisor, schedule a meeting with one
to make sure that you are on the right path.
Pay Off Debt
Start attacking your smallest debt first and continue making the minimum payments on all your other debts. Once you’ve paid the first off, roll that payment over to the next debt.
Contribute to Your 401(K)
If your company offers one, enroll in your 401K match plan. Joining a company plan is painless because your contribution will automatically deduct from your pay, you also get free money from your employer’s contribution, and your money will grow exponentially.
Evaluate Your Career
More than likely your main source of income is your career. Knowing your career goals and your worth will impact your budget and your spending. Look at where you are and where you want to be and set a meeting with your boss to make sure that you are able to meet your goals. If your career goals include a certification that you do not currently have, ask your employer if they will assist you in enhancing your skills. If they are unable to – add that to your budget!
Celebrate Your Success
Make a plan to celebrate the progress that you have made. When you pay off a credit card or if you get a promotion at work these are milestones that deserve to be celebrated. Taking time to look back and acknowledge the progress that has been made will help you stay on track in the long run.
There is no time like the present to get started. People often postpone starting a budget or cutting spending until they make one last splurge purchase. If you wait too long to start the New Year will no longer be new and you may have waited too long. If you are worried to get started re-review your plan and ensure that you can reach your goals.
Sound overwhelming to do alone? Don’t worry – we have you covered!
Our team of financial professionals at Prime Capital Investment Advisors is ready to help you with any financial questions you have. Start of your year right and connect with our team today
to work toward the financial success you’ve always dreamed of!
Latest posts by bentleyford (see all)