OnlyTheBestChoice – Getting rich is certainly an easy opening. In addition to having to work hard, we also have to do some things that support the finances to remain stable.
Moreover, during 2020, the Covid-19 pandemic may disrupt most of the budget. So, we need to be careful to reset the finances in the next year.
Well, here are three tips or tricks that can be tried to be able to reorganize finances and keep us safe, or even “richer” in 2021.
- Create a budget and be consistent
Financial budgets are an important tool to keep spending in line and increase how much we can save for personal purposes.
It’s a good idea to mark the amount of money we enjoy, and make us consistently stick to that budget.
The first step in creating a healthy budget is to record all important expenses.
Monthly billing is pretty easy to figure out, but look back at last year’s bank statements and credit cards for upcoming quarterly or yearly payments again.
Then, make a list of savings goals and deadlines on those goals. This will help us figure out how much money to save per month.
Deduct each of these expenses from monthly income, starting with an important cost.
If we can’t pay all the bills with current income, consider reducing expenses, checking financial assistance programs, or starting side jobs.
If sticking to a budget sounds boring, try to use an app that organizes and tracks our budgets automatically.
By using an app like this, we can also set up automatic bill payments and savings transfers from our bank account to save more time.
- Establish emergency funds
If we do not yet have an emergency fund or during the pandemic the emergency fund has been drained, then rebuilding it should be the main financial goal.
Whatever money we want to keep there, we should have emergency funds for at least the cost of living over the next three months, or more if possible.
Then, if we have a plan to create health insurance, make sure the emergency fund should be enough to cover the deduction.
Unless, we do save for it in a health savings account.
Start saving regularly in a high-yield savings account once we know how much we need.
It’s a bad idea to invest emergency funds because we never know when we’re going to need them.
We could be forced to sell investments at a bad time and end up spending our own money.
Remember to replenish the emergency fund each time you use it. Recalculate emergency funds every year or every time a major life changes.
- Start a side job
Side jobs are a great way to bring in extra money, develop skills, gain new relationships, and perhaps turn hobbies into businesses.
If you’re worried about a pandemic, look for side jobs that can be done from home. There are many online opportunities today, especially for tech savvy.
In addition, side work also allows us to work with more flexible time and conditions.
Nevertheless, it is best to still have a job with a regular schedule and a reasonable salary or according to our level of experience.
Then, remember to set aside some income from side jobs to pay taxes.
The above trick can make us move in the right direction, but don’t stop there. Stay alert to ways to save on our current expenses. [red/*]