Ways to Better Your Finances in 2021

Last year was tough, there's no denying that. Some of us took on more debt to survive, others depleted their emergency funds, the list goes on. But there are ways we can better ourselves and our bank accounts. Here are some ways to improve your financial situation, one step at a time.

Take Stock of Your Situation

Be honest with yourself about where you're at and what needs to happen. What is crippling your finances the most? It could be debt piling up, it could be living paycheck to paycheck and putting nothing aside, etc. Also, take a hard look at where you could do better. It's easier said than done, but identify where you need to make changes in your spending and saving habits. Chances are there's room for improvement and growth on a personal level, so consider yourself as a variable in your financial equation.

Reorganize Your Budget, Bills, and Spending 

So, you've looked at where you're at. Now, let's figure out where you want to go. Decide what will improve your situation. Is it smaller debt balances and monthly payments? It could also be a bigger emergency fund, fewer bills per month, or what have you. Choose the best solution or solutions, then devise a game plan. 

You need to reorganize your budget in order to make changes. If your income isn't changing, then the way you handle your money needs to. Think about what will help get you to your solution. If you need a bigger emergency fund, restructure your budget to help you to spend less on non-essentials and takeout in order to put more away. Look at your options and carefully plan your next steps. 

Break the Cycle 

No matter what course of action you need to take to get to your desired outcome, recognize your financial situation for what it is. How did you get here and how can you avoid it again in the future? If taking on debt or using your credit card too often is a weakness, consider limiting yourself to its usage or even eliminating your card altogether. If you spend money that you should be putting into savings, enlist inner discipline and even your partner to help you stay focused and within your new budget. 

Whatever the case, break the cycle of bad habits and money handling trends. Be ready to reframe some things and address your finances head-on. With the tough year plus we've already had, we could all use a bit of a revamp when it comes to our wallets. Take a deep breath and take things a step at a time and you (and your finances) will be just fine.