There is no question that 2020 has been one of the most challenging years that most of us have ever experienced. The difficulties presented by the COVID-19 health crisis have affected nearly everyone in some way. It is completely understandable that you might be anxiously awaiting the new beginnings of 2021. Maybe this year will be the year that you make the career move you have been wanting, or perhaps you have decided to finally pay off all of your credit cards. Before you look ahead, however, there are some things you can do now to end the year well and set yourself up for success in 2021.
Analyze Your Current Budget
A comprehensive budget is the cornerstone of a family's financial health. In fact, when you enlist the help of The Page Law Firm regarding your debt and bankruptcy concerns, we will help you develop a budget before you take any other steps. It is important to be fully aware of your monthly income and expenses and to see how they have changed during the last year. By doing so, you may be able to eliminate unnecessary expenditures and find opportunities for saving money as the new year approaches.
Prepare for Uncertainty
There is no way to know what the job market will look like in 2021. The effects of this year's health crisis are likely to continue well into the new year, which will absolutely affect hiring and retention in almost every industry. If your family's financial goals are dependent on you finding a new job next year, you should have a contingency plan in place—just in case you are not able to find anything new for a while.
Save for Emergency Expenses
The winter holidays can place a strain on any family's budget, but with travel limitations and fewer in-person celebrations this year, you may be able to save money compared to previous years. If you have any room in your budget, it is a good idea to set aside some extra cash to pad your emergency fund. Most financial experts recommend having an emergency fund that would cover at least two to three months of basic living expenses. If you can set aside six months' worth of expenses, even better.
Review Your Retirement Savings
The end of each year is a good time to take a close look at how much you are saving for retirement, regardless of how far away retirement might be. This year has forced many of us to make our short-term needs a bigger priority than our long-term goals, but your retirement savings will ultimately determine your level of financial independence down the road.
Make some time to review your retirement savings strategies, and if possible, be sure you are taking advantage of any contribution matches offered by your employer. If you are not yet in a place to max out your retirement contributions, you might consider working toward maximum contributions in 2021.
Work With a Texas Bankruptcy Attorney
You may look at these tips and say, “Oh my goodness!” If you analyze your financial situation and find that you are overwhelmed by your debts, a Collin County bankruptcy attorney from The Page Law Firm can help you understand all of your available options. Attorney Théda Page has nearly 30 years of experience helping clients obtain fresh starts through bankruptcy and other debt management solutions. Call 214-618-2101 for a free consultation today.