October is financial planning month. During this month I would like to bring awareness to a few key tips that, if done, will assist you in achieving a financially successful 2021.
MINIMIZE EXPENSES
Reducing expenses is one of the hardest tips to do as it requires a large amount of self-control. By spending less now, you will in turn have more financial freedom to save or invest.
I highly recommend that you take a line-item approach to your budget. Determine if there are substitutions or money-saving alternatives for your most frequently used line items in your budget. If you currently do not budget, I recommend that you read a previous post that lists budgeting software recommendations. By utilizing software, it will help you target potential spending misfalls and target categories to reduce spending.
PAY YOURSELF FIRST
It is imperative that you budget for savings in the same manner that you do for expenses. For financial planning purposes, it is not enough just to cut expenses. You can utilize the amounts from your cut expenditures to start an automatically transferred saving or investment account. By setting up your savings or investments to be automatically withdrawn this will assist you to not utilize these funds for other purposes.
INCREASE YOUR INCOME
One of the most effective ways to achieve financial success is by increasing your income. Due to the shifting economy and the way work is being performed many individuals have availability to start secondary income sources.
If you have a marketable skill such as design, programming, or writing, there are many platforms in which you can earn secondary sources of income in your free time. These other income sources can create a recurring revenue source and put you on the path for financial success.
Hopefully, you will be able to utilize some of these tips to set up 2021 for financial success.
