3 Financial Resolutions for 2021 That Will Reduce Your Debt
Many of us are breathing a sigh of relief that 2020 is almost over. 2021 holds so much promise! New year, new opportunities – even if you are struggling with debt. In fact, these 3 financial resolutions for 2021 will help you tackle that debt head on, so you can focus on what matters this year – you.
Financial Resolution 1: Celebrate Zero Dollar Days
Zero dollar days are exactly what they sound like. They are days where you commit to spending zero dollars. That is zero dollars on take out lunches, zero dollars on online shopping, and zero dollars on anything else you might impulsively buy.
Here’s why they work:
They are an incredibly clever tool for reducing your expenses because they force you to plan ahead.
If you do not have food in the house, you’ll need to spend money on it. Planning your weekly meals and going to the grocery store just once a week saves you time and money! Being there only once reduces the number of times you will be tempted by their deals. It cuts down impulse buying too.
Here’s how to make this financial resolution for 2021 happen:
Plan for one zero dollar day per week. There will be an adjustment period and sometimes it will be difficult. But if you stick with it you’ll reap the financial benefits of planning your spending.
As a bonus, these days tackle your debt from 2 different angles. They reduce the amount of debt you are incurring. In turn, this frees up more money for you to pay down your debt with.
Financial Resolution 2 for 2021: Invest In Yourself!
There are strong ties between health and wealth. Time Magazine reported in 2014 that people with good credit scores tend to have better heart health. WalletHub says that people who exercise often have better credit scores. Meanwhile, the financial stress caused in 2020 has made looking after yourself (physically, emotionally, and financially) more important than ever.
Make room in your budget for a gym membership or, better still, invest in a new pair of runners or whatever you need to get started on your new fitness journey. We would love to hear that you’ve invested in something that doesn’t come with a monthly subscription payment. But if that’s what it takes for you to be healthy – then it’s money well spent!
Here is why it matters:
Your wellbeing affects everything. It affects how you manage the stresses of debt, as well as how you spend your money. Spending (intelligently) on your physical and emotional wellbeing today help you save in the long run.
Financial Resolution 3: Pay Bills When You Get Your Paycheck
Paying off what you owe month to month as soon as you get your paycheck gives you a realistic idea of whether your spending and your income align. If you pay off your bills and do not have enough left over for the groceries you want, something needs to change.
Here is why it matters:
This gives you the information you need to make the changes that matter. It forces you to cut down on ‘luxury’ spending. You will also need to reconsider your monthly expenses and take a look at how they can be cut down.
How to make this financial resolution for 2021 happen:
Set up automated payments for the bills you know are coming. Have the payments come out in the day or two after your paycheck will be deposited. Check in with the payments to make sure they are not ever bouncing – you don’t want to get hit with fees!
Check in with 4 Pillars if You’re Struggling with Debt
You do not need to live with mounting debt and unbearable stress. If you are struggling to reduce your debt, make 2021 your year!
We have helped Canadians resolve more than $1 billion in debt. And 97% of our clients are now living life debt free.
If that sounds good to you, get in touch. We’d love to help you get back on track.