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2020 taught us that taking action early on can help ensure you’re better prepared for unforeseen circumstances. Here’s how to plan your 2021 budget.
Many people have fears about money. Maybe more so following the hardships of 2020. But ignoring your financial situation does you no good and could even lead to:
- Late-payment charges
- Flagged store accounts
- A debt cycle
Fortunately, there are ways to turn things around and put yourself on a firm footing for 2021. Start by making a few changes and revamping your finances.
1. Get acquainted with your money.
Take an honest look at your financial situation. List all your debt, your bank balances and expenses. You can do this in a spreadsheet or notebook, or an app such as Mint.
2. Make a plan.
If you’re running late with a payment or are unable to pay a bill, call your creditors to talk about alternative options. Create a budget for all your expenses, and scan or file any important documents.
3. Hold yourself accountable.
Remove financial triggers such as credit cards (lock them away if possible), limit socialising that requires excessive spending and ask a loved one to be your accountability partner.
4. Ask for help.
You are not alone. If your situation isn’t improving or you need extra help, talk to a financial adviser.
Remember, your financial coach is ready to assist with confidential and professional financial coaching and support.
For more financial advice, read these helpful articles:
- Work smarter with your money
- Prepare (your finances) for the unexpected
- Do these 4 things to secure your future finances
The information is shared on condition that readers will make their own determination, including seeking advice from a finance professional. E&OE.