(DailyThrive.com) – With Christmas just around the corner, now is the time to start thinking about those New Year’s resolutions. For some people, weight loss or giving up an old habit is at the top of the list. But what about money? 2021 is the year to be more savvy with your spending, so why not start with this list of five ways to save?
Pay Off Debt
Are all of your credit cards paid off? Utility payments caught up? If so, that’s a great financial achievement and something to be proud of. If not, put paying off debt at the top of your 2021 to-do list.
There are two ways to do it:
- Snowball method: Pay off your smallest balances first then tackle the big, high interest balances.
- Avalanche method: Chisel away at the largest card balances first. Then work your way through your accounts until the debt is paid down.
It may take time, but just think about how much better your start to 2022 will be with no debt load weighing you down!
Invest in Retirement
The last day of work is coming. It’s almost time to relax or spend time with the grandkids. But for some, that’s just not a reality. With no retirement savings, you may be working well into your 80s because you can’t afford to live without your paycheck.
Prevent that from happening by investing into a 401k or Roth IRA. Talk to your boss about signing up or seek advice from a financial advisor to get the most money back.
Generate a Side Hustle
A good resolution to pencil into your schedule is a way to make more money. Why not try a side hustle in your free time? Some ideas that might interest you include:
- Food delivery
- Voice overs
- Pet sitting
Try one or stack a few gigs to max out your time and gain a good side income. Take what you earn and build your savings or put the cash toward a rainy day fund.
Make Extra Mortgage Payments
It may seem like it’s going to take years to pay off your 30 year fixed mortgage, but that doesn’t have to be how it plays out. Making an extra mortgage payment for 12 months or just adding a little more each month will help whittle down your principal balance that much faster. You’ll also save on interest over time and build equity faster. This is only if you’re financially able to do so.
Build Your Savings
A major player in your resolution list should include building up a savings account. It doesn’t matter if you don’t have one or you already have a big one, every dollar counts! A good rule of thumb getting started is to set aside a minimum dollar amount, say $500. Before spending anything, set that amount aside or into a high-yield savings account.
There are many ways to meet your financial goals next year and thereafter. All it takes is a little patience and perseverance. Getting on top of spending and saving as much as possible are good rules to keep in mind. Before you know it, your resolutions will come to fruition and your finances will be better off for it.
~Here’s to Your Success!
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