Ask Away Blog: Finance And Budgeting Tips For 2021

Finance And Budgeting Tips For 2021

Friday, January 8, 2021

 

2020 was an extremely difficult year thanks to the rise of Coronavirus and everything that came with it. We saw the unfortunate loss of hundreds of thousands of lives, businesses fall to the ground and with it millions of jobs, not to mention the financial struggle that millions of people fell into because of it all. But now, 2021 is here, and while the virus is still at large, the world has worked together to find a solution and adapt to a new normal.

Whether or not the virus affected you financially, you may be looking at how you can improve your financial status this year and if so, good for you! Financial freedom is an incredible feeling, and you can achieve it! Not sure where to start? Take a look at these finance and budgeting tips for 2021.

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Eliminate unnecessary expenditures

We all do it, and we all have them and sometimes, we don’t even realise it! Take some time to go through your outgoings. You can do this by looking at an online bank statement or collecting receipts. Once you’ve worked out where your necessities are such as your food budget and utility bills, you can begin to examine each other outgoing and decide whether it’s necessary or not.

You may find that you’re paying for things that you no longer need or use, or maybe you’d even completely forgotten about it! Things like an unused magazine subscription or a dormant gym membership are perfect examples of this. Once you’ve identified unnecessary expenditures, you can begin to eliminate them to free up more money each month. While it may not seem like much at first, you could be freeing up hundreds if not thousands of dollars each year, and you can only begin to imagine what that could go towards instead!

You may also want to look at how much you’re paying for necessities, as you may be paying too much! Compare prices online for your utility bills to see if you can switch providers or haggle your current provider down in price.

You may also be able to save money on your grocery shopping by collecting coupons and vouchers, and choosing to shop at cheaper stores. Another great way of spending less money on your grocery shopping is by choosing the store’s own brand version of products. Again, you could save hundreds of dollars a year by switching to a cheaper version of your favorite products, and you may find that they taste the same, if not better! Try switching out one product each time to go shopping to try it out!

By eliminating unnecessary expenditures, you can free up much more money each month to save for a rainy day, or even treat yourself once in a while!
 
Consider refinancing to cut costs

Mortgages are far from cheap, and if you’re struggling with the costs of your mortgage, then it might be time to look at refinancing. This is where you approach another lender to pay off your mortgage, and then you begin to pay them the money you owe, usually at a much lower rate. This may extend your repayment plan by a few years, but making your mortgage more affordable means that you won’t have to worry about the worst case scenario - having your property repossessed. You can use this home refinancing calculator to see how much you could be saving each month to spend on other essentials, or to simply save for the future.

Remember that if your financial struggles are temporary (perhaps while you’re finding a new job), then most mortgage lenders will be able to offer you a payment holiday on your mortgage. If you anticipate your financial situation being back to ‘normal’ within a few months, then a payment holiday could be something to consider instead.

Photo by Lukas from Pexels


Look at ways to make more money

If the pandemic has affected your finances, either through reduced hours, complete loss of job, or any other reason, then you may be looking at ways to make more money to help pay your bills. Here are some ideas to make more money in 2021:

Start a blog. There’s a lot of money to be made from blogging, and it can be about anything you like! Starting a blog around your interests and skills could give you a nice side hustle to bring in some extra income.

Do some freelancing work. If you’ve got skills in either copywriting, graphic designing, proofreading and many other skills, you may be able to pick up some freelancing work in your spare time. Take a look at jobs on Upwork, a platform designed for freelancers and clients to work together fairly. Sometimes, you could pick up a job, complete the work, and receive pay within a few hours!

Take on a part time job. Taking on another job - even if only temporary - will provide you with the money you need to get yourself back on your feet. This could be a few hours each night in a grocery store, or even picking up a job as a bartender will help bring your finances to where they need to be.

Start your own business. Have you had a business idea tucked away for the perfect time? Well now is the perfect time! While there are many businesses that have unfortunately had to close due to the pandemic, there are also many other businesses that have thrived. Start up a side business to help bring in more cash and who knows, eventually it could be your full time source of income!

Sell unwanted belongings. Doing this can help top up your finances while you’re getting yourself back on your feet. You may even find you’ve got a hidden gem tucked away in your loft!

As you can see, budgeting and looking after your finances in 2021 doesn’t have to be hard work. Apply these tips to your life and free up some money so that you can comfortably live and effectively save in 2021!



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