We have finally bid adieu to 2020. From finances to lifestyle changes, the pandemic may have caused a stir. But it’s not entirely to blame. The virus attack did come as a wake up call to many, who always prolonged the need to manage finances to tomorrow.

With the New Year, 2021 bringing hope, renewal and refreshed energy, you’re never too late to deep dive and work towards a financially smarter, better and secure year. If you haven’t made a resolution yet, it’s time to get going.

For 2020 has definitely taught a key lesson in life – to be ‘financially healthy’ is equally important. 

1. Become Debt Free.                           

Don’t move onto tomorrow, what can be done today. If you’ve a debt in hand, work aggressively to become debt-free. If you are using credit cards to make multiple payments, where possible switch to prepaid modes. Ensure timely payments of your credit card cycle. Adapt the debt snowball or debt avalanche method to pay off your existing debts at the earliest.

2. Replenish Emergency Fund.             

Having a shoulder to rely on is emotionally lifting and confidence boosting. Having an emergency fund to cover unexpected falls of life is undoubtedly not only the need of the hour but a financial goal everyone should strive to accomplish. This takes off the financial burden off your chest in case there is a medical emergency, an uncertain time period like a pandemic or unemployment days. You can start with accruing 3 months of monthly income, followed by 6 months and eventually leveling to 12 months of income in your emergency fund.

3. Plan For Early Retirement.                  

You can work hard and earn your money back. But you cannot bring back time. Make the most of today and the power of compounding and growth. Commit to systematically investing towards your retirement corpus and maximize the potential of your money working hard for you. After all, you do want to live your golden years sans financial worries. And retiring early need not be just a dream, make it a reality,

4. Contingency Insurance Coverage

We all strive to maintain a work life balance. With mounting bills and unexpected expenses, it’s hard to always stick to your resolutions. However there is one aspect you must not ignore – your mental, physical and financial health. Make sure you are covered adequately with term insurance. This not only secures you but also your loved ones in your absence.

5. Budget Your Bills 

If your spending is left unchecked, it is easy to go on a detour with your budget. Plan, review and forensically analyze your month on month budget to see where you can save. 

6. Prioritize Succession Planning

A will may seem like an unnecessary expense. But don’t undervalue its power to voice your preferences in your absence. Legalize how you wish to distribute your assets to your beneficiaries at the earliest. This will aid in ensuring smooth transition and minimal disputes.