I think I speak for all of us, when I say that I’m so f*cking relieved that 2020 is over. And with a new year comes along new resolutions! Even though January has been to-say-the-least wild as f*ck, the beginning of the year is a prime time to focus on your money and everything going on with it! So sit down, grab your glass of wine, and let’s look at five finance goals for this upcoming year. Let’s get to work ladies!
Start and stick to a budget:
If you don’t have a budget, it’s about time to start one honey! Though it can be scary, creating a budget can be incredibly liberating and fulfilling! It enables you to take a look at all of the money you bring in, the money you shell out, and the money you still need to owe. Read more on creating a budget here. With the lovely wonders of technology now, organizing a budget doesn’t have to be rocket science. Mint is a great app that can help you organize your budget, sync your accounts, and track your spending habits!
Improve Credit Score
Your credit score plays a huge role in your access to financial services and financing. And in certain circumstances, can influence your rate of car insurance and your interest rates. A good credit score in the FICO system is considered to be between 670-730. You can check AnnualCreditReport.com to get a copy of your credit report! Do be warned though that you can only access one free report a year. In order to increase your credit score, stay on top of payments by avoiding late payments, defaults, repossessions, foreclosures, and third-party collections. Also minimize you credit utilization ratio -- the relationship between credit card balances and limits -- by paying your credit card balances in full each month and potentially asking your credit card issuer for a higher credit limit.
Okay, who doesn’t like free money? If you haven’t started investing, this is your sign to start now. Investing is the fastest way to build up your wealth without living a finger, and there are so many different ways to obtain returns, such as stocks, bonds, and other assets. It’s so easy to start an online brokerage account, and perhaps you can use HerCapital’s sponsor, Public, a commission-free social investing app! Here’s a link for $20 to start, on us ;). Even if you don’t feel super confident, remember that you always find a robo-advisor and there are lots of great resources out there (hm… how about HerCapital’s website?!). Start now!
Start Different Revenue Streams
Consider different ways to boost your income! Side-hustles are huge now, and honestly, there’s lots of ways to make it fit to your passions and hobbies. Have you considered freelance work, like graphic design or being a makeup artist? Or perhaps are you someone that likes teaching? Well, tutoring a subject you enjoy, or teaching a language might be for you. On the simpler end, there is always dog-walking, babysitting, and the like. If you have more to front, consider investing in rental properties. Overall, this strategy can provide you with some protection if you lose your primary job.
Reduce Frivolous Expenses
Saving money is a goal we all commit to but honestly ends up as more of a wishy-washy idea in our head. But it’s easy to make spending less money a real success by taking a look at your spending categories and seeing where you can free up some cash here and there. You can make a simple grocery list to ensure that your trips are temptation-free and that you won’t be spending unnecessarily on snacks and unneeded items (though I might understand a Ben & Jerry’s pint here and there). Also consider looking at your subscriptions and seeing what you can cut back on! Do you really need Disney+, Hulu, Showtime, and Netflix? And though outdoor dining is finally opening up again, slow your roll honey! Take 2021 as the perfect year to work on your cooking skills and see how much you can save from takeout and eating out! If you’re not as into cooking, you can try meal subscription services, like HelloFresh, which helps you with meal prep and recipe planning!