Five money tips to help you through 2021

If you’re wondering how your finances will hold up through 2021, you are not alone.

Since the pandemic broke, our finances have been put under so much financial pressure as businesses took a hit and many workers faced redundancy. 

And despite all that, debts are piling up, bills must be paid and we need to eat.

For the lucky ones who still have a place to go to work or a business that is still afloat, you have a chance to make your money work for you.

No matter how little it may be, you must start somewhere and here is what you can consider doing to bring some sanity to your finances this year.

i.Update your budget

Considering how things have changed, review your budget to reflect your current lifestyle. If you’re taking home less or you have been laid off, this is where a budget makeover comes in.

List down all your income and expenses then compare the two. Track your expenses and decide how much you need to cut down or can spend without breaking the bank.

While at it, don’t forget to set aside something little for a treat. At the end of the day, you are the one working hard for your money so you might as well enjoy a little of it.

ii.Cut down

Once you realize how much money you can’t afford to waste anymore, you will be amazed at how creative and frugal you will get to live within your means.

If you can no longer afford going to the salon consider doing your own hair at home. Dinner dates can be converted to freshly made meals you can enjoy in the comfort of your home.

List down what needs to be paid in order of priority and budget the rest to go towards savings, an emergency fund and investments.

iii.Start a side hustle

If you don’t have any capital to start a business do not despair but look for alternatives. In this internet age, it has never been easier to make money in the comfort of your home than now.

Online jobs are the future and this is the time to jump on that bandwagon. You can curve a new career path for yourself and even work full time without leaving your house.

Look into starting a blog if you enjoy writing, teach English to foreign students or become a virtual assistant if you’re good at organizing and accomplishing tasks on time.

iv.Save

Look for ways you can spend less to save more. If that means moving to a smaller house, buying a cheaper car or getting rid of unnecessary subscriptions this will go a long way.

Set saving goals to help you stay focused and if you find it difficult to be motivated to keep some money away find ways to make yourself commit. For instance, you can decide to match each amount you spend to also put aside for savings.

v.Watch your spending

The reason you have a budget in the first place is to control your spending. You need to know where your money is going and whether it is being wasted or not.

You will be amazed how much you can cut back and put the extra cash into good use. If you have a serious problem with spending, you can start with a daily or weekly plan to keep your spending on track.