Hindsight is 2020. Welcome to 2021!

This past year was a tough year financially for many persons and in some cases, all savings were depleted and debts were increased. Let’s put some plans in place for 2021.  

What can you do to ensure that you are protecting your financial health and building wealth?

Are you putting on your physical masks, and leaving your finances exposed?  Personal finance will be one of our focuses for this year.

Below are some things to consider to boost your financial security in 2021.

1. Spend less than you make

this advice sounds like a no-brainer. However, you will be surprised how many people spend more than they make every month. If you spend less than you make, you have some funds left over for savings.

2. Start saving for emergencies

if you follow the previous tip, you will have money to save. The amount does not have to be large, save whatever amount you can afford. Consider automatic saving from your paychecks into a savings account. If you get paid every two weeks and you save $40 per pay period, you will save $1,040 in a year. Do that for five years, with compound interest, you will have more than $5,200 saved

3. Adjust your payroll withholding

If you normally get a large refund, it is time to change your W4 to get more money in your hand monthly. A big refund means that you are letting the IRS use your money throughout the year, interest-free. You can use this money throughout the year to save or to reduce debt.

4. Live by a Budget

Create a budget and live by it. If you keep track of what you do with the money you make, you might be surprised what you are spending your money on, and may actually change your spending habits. A budget gives you control of your finances.

5. Refinance your mortgage

Mortgage interest rates are at an all-time low. Consider refinancing your mortgage to lower your interest rate and monthly mortgage payment. Contact your lender, or better yet for comparative mortgage interest rates, go to www.bankrate.com.

6. Lower your debts

The best way to lower your debt is to stop incurring more debt. The fastest way to save money is to reduce your debts that are incurring interest. The interest rate on most debt is higher than the interest rate on savings accounts. If you pay down your debt you will have enough funds to increase your savings and build wealth.

Trying a combination of the above tips can change your financial roadmap.  Schedule an appointment if you need assistance in setting up or reviewing your plan.

"Setting up clear objetives and an action plan for your finances will get you to a better place."

– Michele Pemberton


Start your new year with a strong financial base.