A goal for 2021: Get on the right track toward experiencing financial peace of mind

Thankfully, 2020 is almost over and the new year is just around the corner. The time has come to start making the dreaded New Year’s resolutions.

The most common resolutions are eating healthier, exercising more and losing weight. While these are great goals to set for yourself, it is more important than ever to make sure your finances are in line during this time of uncertainty. Here are a few ideas to help you reach financial peace of mind in 2021.

Evaluate your situation

Many people stick with the same financial institution for years because it is something they are used to and comfortable with, but those accounts may not be giving you the best bang for your buck. Every financial institution offers something different — better rates, payouts, rewards — and what you have now may be outdated and not earning what you deserve. Take a moment to look through your accounts and compare them with other financial institutions. You may discover you can get more for your money or more from a new financial institution.

Set goals

After making sure you are earning what you deserve with your accounts, take a moment to set some financial goals for the 2021 year. Whether you are looking to buy a house, buy a car, pay off some debt, or just start saving in general — a goal is a goal, and having (at least) one means you are trying to better yourself and your financial situation. Sit down and think about how your finances have been affected since the pandemic, and plan for how they could possibly be affected in the new year. Knowing where you want to be is a huge step in having financial peace of mind.

Save

It is more evident now than ever that having some savings stored away in case of emergencies is so important. In a year of uncertainty — when the possibility of being out of work and without a steady cash flow is higher than ever before — having that safety net behind you is crucial to feeling secure in your finances. Look at the income you have coming in each month, pay your bills, and then set aside a portion of what is left for savings. Whether it is $1,000 or $10 — any amount put into savings is a step in the right direction to being prepared should an emergency pop up.

2020 has been year unlike any other and setting yourself up for success has never been more important than it is right now. While there are many ways we can better ourselves in the New Year, making sure your finances are on track — and you have a plan in place — is a big step in the right direction.

These financial resolutions will put you on the right track. Cheers to a new year and new goals.

Kat’s Money Corner is posted on Dollars & Sense every Tuesday. Kat Hnatyshyn, when not blogging or caring for her little ones, is a manager with CommunityAmerica Credit Union. For more financial chatter, visit http://communityamerica.com.