Wow what a year. 2020 was a challenging year to say the least. 2020 taught us a lot. We’re going to walk you through on how to not only survive but to succeed through and overcome another economic downturn. Are you ready to set new financial goals for 2021? We think you are.
#1. Save, save, save, save
I think we’re in the clear to say most Americans wish they would have saved more money for what was to come during the economic crisis of 2020.
If you had to pay rent, bills, and other expenses you know exactly what I’m talking about.
Practice putting money away every month
One of my first financial goals was to build my emergency fund. This emergency fund would be a safety net for my family should anything drastic or out of my control occur.
This money was put in a money market account or high-yield savings account, where I earned interest every month.
I made sure my hard earned money was bringing me passive income instead of collecting dust in a traditional savings account. Have money make you money baby, let’s do it.
Wait, wait. Where can I find a high-yield savings account?
Every bank is going to offer you different APY, also known as annual percentage yield. It’s how much a bank will pay you for banking with them.
Here’s a list of banks you can check out so you can start setting new financial goals for 2021:
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#2. Have more than one income
This financial goal is one that most wealth builders focus on to reach financial confidence. Financial confidence provides stability and security.
There are several ways you can create another stream of income. This ultimately depends on how much effort you’re willing to put into this new project, side hustle, or startup.
Developing more than once source of income is going to allow you to allocate those additional earnings towards your savings account reaching your goals much quicker.
You can also use the extra cash to fund your startup or side hustle if you have entrepreneurial ambitions.
How can I earn money outside my 9-5?
Most Americans tend to take comfort after their 9-5 which is the primary reason for insufficient funds at the end of every month.
Even if you make a decent living decent isn’t enough right? Our readers aren’t average people.
- Sell a service online using Fiverr (e.g. tutor, how to info, freelance writing, graphic design, etc.)
- Start a blog using Bluehost and earn money writing in your niche.
- Take on eCommerce using eBay or Amazon (sell hard goods online)
- Work for rideshare or food delivery services.
But wait, there’s more..
I have a ‘Side Hustles‘ tab dedicated to anyone looking to make an extra income. There you’ll find how to start a thriving online business, how to start a blog this new year, and other creative ways to make money from home.
Creating multiple streams of income should be on your list of financial goals if you’re looking to build long-term wealth and sustainability.
Most Americans found out that when their only source of income was depleted the struggle was real. Protect yourself and your family by beginning to apply your skills and knowledge in the marketplace outside your current workspace.
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#3. Learn the fundamentals of investing
Learning how to invest has never been easier. My first year investing in the stock market yielded a whopping 40.9% return of investment (ROI).
Luckily, our readers can learn how to invest in the market step by step here.
To those of you wondering what stocks I own, some high performing stocks include Apple (AAPL) and Tesla (TSLA). Just a quick fact, you too can own them.
Wealth builders meet financial goals through investments
When you let go of the fear of investing, the fear of moving your money, things you never thought could happen begin to happen.
When I started setting financial goals for myself I knew that a high-yield savings account was not going to allow me to reach certain goals I had written down.
It was going to take a little more risk, but educated risk. Here are some tips when investing:
- Invest once you’ve build a heft emergency fund first
- Think long-term success and let your investments prosper
- Purchase shares when low (red), look at them as a discount
- Don’t panic sell, breathe and let the market do it’s thing
- Remember that businesses are working towards success, they want to win
- Invest in companies you believe have a bright and innovative future
- Learn, learn, & continue to learn through the experience
Where can I learn more about investing?
One of my personal favorite YouTubers is Andrei Jikh. You can find loads of valuable information from his videos that will help you understand more about the concept of investing.
If you want to multiply your money, learn how to invest
The biggest reason investing became one of my financial goals is because I wanted my money to work just as hard if not harder for me as it took for me to earn it.
When you study the wealthy you will find that investing is simply part of the process towards reaching financial confidence and independence.
#4. Increase your current income
We discussed creating multiple streams of income and generating a discretionary income through side hustles and startups.
But what if you simply can’t balance your work-life schedule with more than one gig?
If that’s your case then increasing your current income can be a great financial goal to set for yourself.
Find ways to earn more in your workplace
Look for opportunities in the workplace. Making more money will often times require you to step outside your comfort zone.
This might include working overtime, learning new skills, attending workshops, and providing more value in your workspace to stand out.
Apply these strategies and you’ll have a better chance at increasing your income in your workplace without having to commit to something out of your scope.
#5. Write down your financial goals
This might seem like a given but it’s far from. Most people don’t ever write down their goals.
For some reason, writing down goals feels like tasks that must be accomplished. Perhaps this is why highly successful people all seem to have this one habit in common.
Based on personal experience, it works
Before I was compensated I would write down on a notebook exactly how I was going to allocate that money.
I would then write down my financial goals and mark where certain accounts would be in two months time.
I became obsessed with reaching my goals and writing them down was a sort of exhilarating step to this process because it showed me where I would be a few months from then as long as I stayed on track.
Writing your financial goals is very important
See the thing about writing down your financial goals is that it builds discipline. It creates a focus and motivation that ultimately leads you towards meeting those goals.
Set your personal goals, whatever they may be
In the end, setting financial goals for 2021 should be exactly what’s right for you. They should be what you desire the most.
If your financial goals are to save a little more so you can purchase your first home then all power to you. You can do it.
Make 2021 an exciting year. We learned so much from 2020 and now it’s time for us to take action this new year and apply the knowledge we’ve now obtained.