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How to Start 2021 Off Right with Finances

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Getting a good handle on your finances is no easy task, trust us. But, if you ask for help along the way, you’ll be better off in the long run.

We’re happy to see that you have searched out how to better yourself financially. It shows that you indeed do want to get things right and get 2021 started properly! Here are a few tips to help you do just that.

Start a savings account

You most likely have a checking account, but it is wise to open a savings account, too. This will allow you to put money away, and not have it sitting in your account waiting to be spent.

You can set up a direct deposit, so the money goes straight to your savings account from your paycheck, or you can start an automatic monthly transfer. That will keep it out of sight, and out of mind. And you can’t spend money that you don’t see too frequently.

Create a budget

Part of creating a budget is staying on track with it. An easy way to stay within your budget is by cooking at home.

There are so many easy, affordable, copycat recipes out there, that will help you to save money, but still taste like you are eating at a restaurant. In turn, this will save you quite a few bucks weekly, and you will be able to up your cooking skills. Sounds like a win-win to us!

Have a savings plan

There are tons of apps out there to help you create budgets, but you should get one that really works for you and has all the info you need in one place. Many budgeting apps have everything you need in one place and are focused on your security, with multiple safety features in place.

Ideally, you want to find a solution that allows you to have your budget, credit monitory, and savings in one place. With the help of an app, you will be able to create and maintain your savings plan by having everything in one place, your phone.

Take a step toward financial freedom

If you need some help when it comes to resolving tax debt or getting your affairs in order with the IRS, you should try and give yourself a fresh start. The IRS fresh start initiative will help you to give yourself a fighting chance when it comes to avoiding penalties and getting tax relief.

A tax professional can help you create a more flexible repayment plan and can even help you to absolve your back taxes without the major penalties.

Be patient

Though you want to move out and live in your ideal place, if you are able to, stay in an affordable and safe spot, that will allow you to save more. Be patient when it comes to making big decisions like moving or making a big purchase. We recommend sleeping on it before you commit.

This will help you to make the decision with a clear mind, and you can ensure that you are making the right decision for you. 

Think about debt consolidation

If you have quite a few high interest debts, it may be time to look into consolidating them.

By starting this in the beginning of the year, it will help you to stay on track the rest of the year and will minimize the interest that you would have accrued over the course of the year. This of course can be done anytime, but it is better now than never.

Look at all of your debts and see where you have the highest interest rates. Then research what type of loan interest rates your bank can offer you for a personal loan. Meet with a banking representative to see what will be best for your specific financial situation.

As long as you are aware of your financial situation and are taking active steps to get where you hope to be next year, you’ll be on your way to a financially strong 2021. Good luck!

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