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Are you looking to improve your finances in 2021? Whether you're at the start of your money saving journey or a seasoned pro, here are four powerful money moves you can make this year.
Save an Emergency Fund
If 2020 has taught us anything it's to expect the unexpected. Having an emergency fund saved can be an absolute lifesaver when unexpected expenses crop up and can help stop the need to rely on credit cards for emergencies.
While it's recommended to have six months living expenses saved in an emergency fund, if you're just starting to get into the habit of saving money regularly, this may seem like a huge and unattainable amount.
Remember, everyone needs to start somewhere and even small amounts saved into your emergency fund will start to add up over time. Having an emergency fund is one of the best ways to feel in control of your finances.
Unsubscribe and Unfollow
Impulse purchases can be a problem and are often tied in with our emotions - we spend to make ourselves feel better, but the high often doesn't last very long and can put a dent in our finances too.
What doesn't help with this type of spending is being bombarded with special offers, discounts and sales into our email inboxes and across social media platforms too.
Hit the unsubscribe button, unfollow and find another way to get your shopping fix.
Try shopping from the clothes and books you already own and when you do need to make a purchase wait at least 24 hours to ensure it's really something essential.
Not only will this help save money, it's also a great way to be more mindful around everyday purchases too.
Start That Side Hustle
Close up on hands raised throwing and catching money in the air
New Year is often a time for both reflection and looking to the future. It's also the perfect time to start working on those big life goals.
Whether it's owning a business or having a second income stream to fall back on when things are tough, there's no time like the present to get started on a side hustle to make some extra cash.
Take the leap, make the call and get things going. Just think where that business could be this time next year!
Make Your Money Work for You
One of the best money making tips you can commit to for 2021 is making the money you already have work harder for you.
Invest - While investing should never be taken lightly, it is one of the best ways to earn money from the cash you already have. Investments are typically for the long term and can go up or down over time - the longer they are left the more likely they are to yield a profit.
Pension Contributions - If you're comfortable now it's worth thinking about how comfortable you'd like to be in retirement too. Increasing your pension contributions is an easy way to do this, especially after a pay increase
High Yield Savings Account - It may take a while to find a good one, but taking some time to research the best high interest savings accounts could mean earning significantly more on your savings.
Whatever your plans for the coming year are, getting the most out of your money should be a top priority. Whether that’s building an emergency fund to help you stay out of debt, curbing a shopping addiction or taking your first steps on the road to investment make 2021 the year you fully take control of your finances.