New Year, New Budget: 8 Tips to Start Your Financial Year Off Strong
If 2020 had you stressing about money, you’re not the only one. Even during a global pandemic, one study found that people are just as anxious about their financial health as their physical well-being.
A budget can help you take control in the new year ahead. It’s like your road map through your money journey.
Whether you’re looking to polish your yearly plan or you’re trying to add some organization to your cash chaos, these tips are here to help.
We just decided right now that 2021 is the year to get super intentional about your money moves. How do you do this? With measurable, achievable goals.
Instead of choosing a general intention, like: I want to save more money this year. Try something specific, like: I want to save $9,000 toward a home down payment. To reach that goal in 5 years, I need to save $120 each month.
To create targets that you can easily measure:
- Set your goals: What do you want?
- Estimate cost: How much money is it going to take?
- Estimate time: When do you want it?
Once you know the big picture of your goals, you can work backward to figure out what that means for your budget. You’ll probably find you have to prioritize one or two goals above others, but that’s okay.