After a difficult year, human beings maintain the ability to get ahead. Survival is an instinct that manifests itself in everyday things and the ability to adapt comes to the fore.
Money is an important aspect because it allows access to basic things to survive, as well as a state of tranquility. We offer you four keys so that in 2021 the management of your money is optimal and you start the new year on the right foot.
- Make a budget. We never tire of suggesting it. The budget is a “snapshot” of finances, the starting point for organizing money. If in the pandemic you learned that every dollar counts, it is time to take a pencil and paper to write down all the income and expenses. From 25 cents for a candy to the rent. By looking at them you will discover where your money is going and what can be reduced or eliminated. Use this planner to help you organize your information and project how to spend your money in 2021.
- Take control of debt. If you feel like debt is a burden, make a payment plan and make it a new year’s goal. List debts, from $ 20 at the store to car credit. Write down the name of the creditor and the value of the monthly payment or the one-time payment. Lean on your budget to see which ones you can start paying in January: the smallest, the highest interest, the overdue, etc. This calculator will help you to know your current payment capacity so that you can start the recovery.
- Build an emergency fund. Saving is possible. Saving is not what is left over at the end of the month but what is saved before spending. It is relative if you earn a lot or a little, the important thing is that it is a habit. If you have a salary of $ 400 a month, save $ 10 and consider that your income is $ 390. If you are a micro-entrepreneur and have a daily income of $ 50, save $ 5 at the end of the day. In a savings account, in a piggy bank, in an envelope. This money will relieve you in an emergency, so it is kept “religiously” and not used for anything else.
- Generate additional income. Entrepreneurship is complicated because it involves resources, getting clients, learning by doing and adapting. But that does not mean that it is not achieved. Generate business ideas with your family according to their abilities and assets: teaching classes, helping with homework, providing transportation services, selling things in good condition, preparing food at home, making homemade things, etc. Write down all the ideas and discuss which ones might work. Find out costs, research the market yourself, and “spin” it because a new successful venture is likely to emerge.
