There’s a chance that many of the financial resolutions you made in 2020 didn’t go as planned due to COVID-19. Since all of us were busy adjusting to the pandemic, the restrictions, and the many life-changing occurrences in between, for thousands of business owners and employees around the world, achieving our financial goals became a challenge.
In the United States alone, 60 percent of business closures became permanent as of December 2020. Furthermore, 17.75 million Americans didn’t have a job in June 2020, according to the U.S. Bureau of Labor Statistics.
2021 is the time to bounce back. If your finances plummeted in 2020, make the most of the new year and beyond by trying one or more of these financial wellness tips.
How to Make More Money in the New Year
No more excuses! If you want 2021 to be a better year financially, consider making these seven financial resolutions.
- If you lost your job, look for new opportunities
This tip might seem obvious, but it’s also the most important since you won’t be able to do any of our other recommendations without a source of income.
Several companies are looking for people to help restock empty shelves, deliver orders, answer incoming calls, provide account services, and man the cashier, just to name a few. Hospitals are always looking for new healthcare providers, restaurants are seeking chefs and servers, and the list goes on as the world slowly returns to normal.
A quick Google search should help you find good career opportunities during this time. To help begin your search, here is a list of companies looking for workers.
If you already have a job, then keep up the good work! A pay raise or promotion could be in your foreseeable future.
- Audit your finances
The beginning of each year is a good time to review your spending habits and ask yourself if all of your expenses are necessary. Some areas to examine include:
- Streaming services. Paying for a streaming service is reasonable since entertainment is important for stress relief. However, it no longer makes sense once you’re paying for two or more services. Stick to Netflix, Hulu, Amazon Prime, or Disney+, but avoid subscribing to all of them at once, especially if you don’t use them regularly.
- Food delivery. Even though it requires more time and effort, it is cheaper and healthier to go to the grocery store and make your own meals instead of ordering takeout daily.
A word of advice: If you can live without spending your money on a particular product or service, then you don’t need to keep paying for it.
- Set a weekly budget and don’t forget about it
Lamar Brabham, CEO and founder of Noel Taylor Agency, an established financial services firm in North Myrtle Beach, South Carolina, recommends focusing on a weekly budget rather than a monthly or annual one.
Most people can’t stick to a budget because they forget to check it often enough. If you create a budget and spend at least five minutes a week to review it, then you can be one of the elusive 20 percent of people excelling at this financial New Year’s resolution, said Brabham.
- Pay off your debt
Jeff Busch, a partner at Lift Financial in South Jordan, Utah, advises everyone to “do all you can to keep debt to a minimum. Managing debt can help you free up some money and contribute to your retirement plan.”
- Consider moving someplace more affordable
Although this may seem like an odd piece of advice for people trying to save money, there are a lot of states where you could make a ton of money and spend little on housing. Here are the ten best states for affordability and the ten most expensive to live in.
Spoiler: Arizona wasn’t included in the rankings. However, according to PayScale, the cost of living in Phoenix is 5 percent lower than the national average, which is good if you’re thinking about moving to save money.
- If you’re thinking of proposing, consider the ways to save money on an engagement ring
Most of us can’t afford a $4 million engagement ring like Prince Rainier III of Monaco. The good news is that there are ways to get a beautiful engagement ring without breaking the bank.
First, avoid paying for an engagement ring through a jewelry store credit account, as the interest rates can be high. Instead, consider buying from an online showroom to save money and have a large selection to choose from. The Relux is a prime example of an online showroom that offers authentic engagement rings from the world’s best jewelers. From antique to modern rings, The Relux has affordable options for everyone.
In addition, you may want to consider alternatives to diamonds, since they’re usually less costly.
- Have an emergency fund
Learning from our mistakes in 2020, this is the year to open a savings account that will serve as an emergency fund.
“A good goal to keep in mind is having around six months’ worth of expenses saved in this account. However, it can’t hurt to have a bit more saved given the uncertainty at the moment, especially if your income tends to fluctuate” advises Whitney Ditlow, a Northwestern Mutual financial advisor based in Miami. “The goal of this account is to allow you to cover unexpected expenses without having to use a credit card,” he added.
If you need money to start an emergency fund, Biltmore Loan and Jewelry can help. Here are 7 Luxe Items to Sell for Fast Cash During a Pandemic. Simply bring your item to our office and one of our associates will offer you immediate cash.
A Word From Biltmore Loan and Jewelry
Be careful about setting unrealistic or too many financial resolutions, as “biting off more than you can chew” could set you up for failure. Take this opportunity to simplify your money goals instead of overwhelming yourself with impractical objectives. It’ll help keep you focused and less stressed.