Financial Resolutions: Fulfilling Your 2021 Money Goals
“Be always at war with your vices, at peace with your neighbors, and let each New Year find you a better man.” -- Benjamin Franklin
New Year, New Me! And the cycle of creating New Year's resolutions begins once again… but how often do we stick to those resolutions? Oftentimes, we don’t. Especially since we’re starting the new year during a challenging time, it may seem even harder to follow through with a New Year’s resolution.
But that doesn’t mean we should lose faith because there are many ways for you to regain your financial footing and end the year strong! From building a secure budget to learning how to manage your debt, there are many smart tips and tricks to start 2021 on a good note! All it takes is a good attitude and your determination!
We are always here to help, so we’ve invited expert panelists Courtney McQuade @CourtMcQuade, Chris Browning @PopcornFinance, and Katie Fatta @navicorePR to help you get your New Year’s financial resolutions started! 2021, here we come! :-)
Missed the Tweet Chat? Here’s a recap:
Q1: What are your financial goals for this year? What daily encouragements help keep you motivated and reminded to work towards your goals?
Courtney McQuade: My goals are to save as much money as possible. Since I am trying to avoid needless online shopping, each time I feel tempted, I will put the money I would’ve spent into my savings – I want my new hobby & passion to be seeing those savings add up!
Chris Browning: My main financial goal this year is to max out my 401(k) and my IRA. My bonus financial goal is to constantly donate each month this year. I think 2020 showed me how important it is to support the causes and organizations I believe in.
Katie Fatta: Our most recent podcast episode covers different financial goals you can set for the New Year, ways to prepare for the goals, and how to stick to your financial goals this New Year.A3a: Set small goals each day that work toward your larger financial goal in order to keep yourself encouraged daily to accomplish your goal.
Q2: What are the best tips to keep in mind when creating your financial resolutions? How do you go about selecting smart, achievable goals?
Courtney McQuade: With any goal I set, I try to be realistic, and start small. Once I achieve one small goal, it is encouraging to set and start a new goal. When I set goals that are too big, unrealistic, and I fail, it is disappointing and not as encouraging.
Chris Browning: Don’t over do it. I think we all get excited about the new year and what we want to accomplish and end up making a list of goals that is way too big and unrealistic. Focus on a few goals that are truly important to you.
Katie Fatta: Keep your goals realistic. For example, if you have a large amount of debt, you might not be able to make your goal to pay off all your debt this year, but you can make it to pay off a certain amount this year. The best way to establish an achievable financial goal is to make your goal a SMART goal. The acronym stands for specific, measurable, attainable, realistic, and time-bound. [Check out this link for more details: http://bit.ly/3pMdvn6]
Q3: Accountability and discipline is everything. What does it mean to hold yourself accountable? What role does discipline play in being successful in your aspirations? How do you master self-discipline principles and practice accountability? How do you out-smart your behavioral impulses?
Courtney McQuade: I always start small and try to make realistic goals. Once I see progress, it inspires me, it motivates me, to want to do more good things for myself. I also keep a list of things I want to do for myself that I never seem to have time for such as watch[ing] a 10 min YouTube video on a makeup tutorial, clean out my top drawer, read a chapter of my favorite fictional book – and then when I feel tempted to do something really shouldn’t, I do one of those things in my list first… it helps stop the impulse.
Chris Browning: The first step is to write down your goals. If you can’t even remember what goals you set for yourself it’s so easy to pretend you never even set them. Also, making your goals list realistic and short will help you avoid the fatigue that will inevitably set in.
Katie Fatta: Holding yourself accountable means that you stay away from viewing yourself as a victim of circumstances. You have a sense of ownership for yourself and the consequences of your actions. Being disciplined can help you be successful in your aspirations because it keeps you focused and in control of your goals. This will help you stay on task when accomplishing your aspirations. Being self-disciplined will help you overcome any weakness you feel about accomplishing your goal. You can master self-discipline by staying positive about your goals and knowing you will accomplish them. You can practice accountability with your goals by not letting things out of your control get in the way of you accomplishing your goals. Don’t use unprecedented experiences as an excuse for not reaching your goal. Out-smart your behavioral impulses by setting an end-goal for yourself. This will help you keep your eye on the prize.
Q4: Paying off debt isn’t easy, but it’s worth it. What smart strategies for paying off debt paid off best for you? What are the best tips for getting out and staying out of debt? What did you learn from paying off your debts? Where can you turn if you need help?
Courtney McQuade: I had an extra source of income from a side gig that I dedicated all proceeds to go toward my debt. Since then I make sure I have a good savings and a budget plan so as never to get into debt again!
Chris Browning: Know where you are starting from. It is so hard to track your progress if you don’t know your starting point. I had $27k of debt back in 2017 and used @mint to track balances across all my cards & run scenarios to see how much faster I could pay off my debt.
Katie Fatta: There are many different strategies to help you pay off or minimize your debt. Reducing your debt this year can help your finances tremendously. A great tip to get out and stay out of debt is to always pay more than the minimum on your credit card every month. You always want to pay off your bill in full at the end of the month, but if you can’t focus on paying more than the minimum. A non-profit credit counseling company, such as Navicore Solutions, is a great resource for professional debt help. Navicore will give you a personalized debt management plan to help pay off your debt.
Q5: The biggest commandment in the budget bible is thou shalt save money. How do you create a budget Savings Goals Budgeting? What is more important: a strict budget or a functional budget? How do you create a budget that helps you reach your savings goals?
Courtney McQuade: I have to say it’s all about being realistic – too strict can make someone unhappy and possibly break down into a spending spree. Having a side gig that you dedicate all to savings and/or an automatic transfer from each paycheck into your savings can really help.
Chris Browning: Know what you are saving for. An emergency fund, a new pet, a house? Be specific in what you are saving towards. I am always a fan of function over rules when it comes to budgets. You need a plan that you will actually stick to.
Katie Fatta: Having a functional budget is more important than a strict budget. It’s super important to keep your budget realistic because that will help you actually stick to your budget and not overspend. See what you can live without in your budget and cut that out. Make a category in your budget for savings and put that extra money into the savings category on your budget. Make payments to your savings automatic so you don’t have to think about it and since the money is automatically taken from your account, you won’t even notice it’s not there after time.
Q6: Understanding your credit score is a big part of your overall financial health. What are the most effective steps to improve your credit score? How often should you monitor your credit? How do you make a correction should you find incorrect information on your credit report?
Courtney McQuade: Use a credit monitoring system like @creditkarma, or @mint offers this too. Be sure to pay off your credit cards each month or keep a very low balance, always pay on time and try not to open new lines of credit…length of credit history affects your score!
Chris Browning: 2 biggest factors that determine your credit score is payment history & the % of available credit you are using. These 2 things make up around 2/3 of your score. So the best thing you can do is to pay down your debts on time. It’s not exciting but it’s key. I check my credit once a month. It is so easy these days to do this. Most credit card companies let you check your credit score for free and even alert you if there are any changes. I’ve been using @discover for this for years.
Katie Fatta: You can listen to our podcast with @RodGriffin from Experian where we discuss everything about credit, including how to improve on your credit score. [Check out the podcast here: https://bit.ly/33CHHc4] Payment history accounts for 35% of your credit score. To improve your score, pay your bills consistently on time because payment history is the largest factor in your credit score. [Learn more here: http://bit.ly/33Ex9rz] You can check your credit score as often as you want. A good rule of thumb is to check your credit score every month to keep track of your progress. Checking your credit report often will help you detect any errors. If there is an error, send a dispute to the credit bureau.
Q7: Use the technology that’s available to your advantage. What are the best apps, tech, websites, and methods to use as you strive to reach your financial goals? What helps you stay focused, stay motivated, track your progress, etc.?
Courtney McQuade: I love @mint for analyzing at my budget & recently started using @quickbooks for my biz. To save money I love @CapitalOne’s shopping app – a free tool that instantly checks for coupons, better prices & for online shopping – I’ve saved tons through this app!
Chris Browning: I love using tech to manage my finances! (probably more than I should) I’m a big fan of @copilotmoney and @mint. These are the two tools that I have used the most over the years to manage my money. Plus I always love a good @msexcel spreadsheet.
Katie Fatta: Listening to other people’s success can help motivate you to achieve your goal. If your goal is to become debt-free then take a listen to the success story of one [of] our clients, Chantelle T. [Listen here: http://bit.ly/3nD1UpK] If you’ve never had a financial goal before, start with the app Mint. Mint is an awesome app that helps you create a budget and sends you notifications that help you stick to your budget.
Q8: What are your long term financial plans? How are you doing in relation to achieving your retirement savings goals? What are the best tips for building long-term savings? What can you do now to help make retirement less burdensome when that time comes?
Courtney McQuade: I want to be able to retire comfortably and enjoy life. My best tip for building long-term savings is auto-transfers & working with a good financial advisor to help guide you and prepare for retirement.
Chris Browning: My long term goal is to retire before 50. Not necessarily a full retirement, but one with the option to do the work I enjoy on my own schedule. If you are worried about retirement, start making a plan today. It doesn’t have to be perfect or the final version you have to live your life by. But starting the process as soon as possible will help relieve some of the stress of retirement.
Katie Fatta: Planning for your long-term financial future is so important. Start investing in your retirement as early as you can, whether it is with a 401k or an IRA. Some people, especially young people, might not prioritize saving for retirement because it seems so far away, but it’s important to not think like that. Investing anything in your retirement is better than investing nothing at all. You can listen to our podcast with @WinnieSun where we discuss the importance of investing in your retirement, especially as a millennial. [Listen here: https://bit.ly/3lX41Vf] Long-term savings is essential for a successful financial future. By having an emergency fund you’re saving long-term because you’re helping avoid debt due to an unexpected life circumstance. [Learn more here: http://bit.ly/2SjHZ0W] If you haven’t done so already, invest in your company’s 401k or 403b. If you don’t have this option, start an IRA or Roth IRA for yourself.
We hope that this advice will help you with your own New Year’s resolutions! Getting started is always difficult, but once you get the ball rolling, you’re one step closer to achieving our goals! We wish you all the best, a happy new year, and stay safe.
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