9 Financial Things to Do to Start 2021
- Author: Kelly Cooke
- Posted: 2024-10-03
9 Financial Things to Do to Start 2021
We always set financial resolutions with the best of intentions every year. Getting on track financially means you will experience less worry and stress in the long run. Everyone would want to achieve their financial goals. However, in some cases, this may not be possible. There are many reasons why you may fall short of your objectives.
One of the reasons why many people find it hard to achieve their financial goals is procrastination. Why should you start working on your goals tomorrow if you can do it today? Make plans and ensure you stick to them. The following are the nine things you should consider to kickoff 2021:
It's Time to Use the Funds in Your FSA
Do you have an FSA? Time is running out to spend your balance. FSAs are usually offered as part of employee benefits, and they allow you to put money directly from your paycheck, tax-free, into an account so that you can use them to pay medical-related costs throughout the year.
You may not remember signing up for a plan. If that's the case, contact the HR department for inquiries. Don't let the funds go to waste. The main drawback of flexible savings accounts is that you will lose the balance if you fail to use it by each year. You can use your FSA money to cater to expenses such as prescriptions, medical supplies, and eyeglasses.
Fund Your HSA
Many employers are now offering high-deductible insurance plans that qualify the employees to save money in a health savings account. Generally, the HSAs have lower premiums than other health insurance products, but individuals are required to pay higher out-of-pocket expenses.
There are numerous benefits of having an HSA. First, the contributions are tax-deductible for all income brackets. The goal of the account is to cover the cost of healthcare plans. Unlike an FSA, if you fail to use up the money, the balance is rolled into the following year. However, note that the funds you deposit into your account are tax-deductible, which can help you to lower your tax bill.
Start Investing Now!
You don't need to have millions of dollars to start investing. You can spend as little as $1 to have an ownership stake at Google, Amazon, or other large corporations. This is the ideal time for you to start investing. Don't wait for the following year. The stock market may be volatile, but the value of your current portfolios will increase over time.
An app known as Stash allows you to own a small percentage of large companies for as low as $1. That's right. With the app, you can invest some of your money in reputable organizations. Some corporations send checks to the owners every quarter for their dividends. The signing up process only takes two minutes after depositing $5. Stash's monthly subscription packages start at $1.
Monitor Your Credit Scores
When it comes to credit scores, you need to be organized and monitor them closely. Recently, model changes resulted in credit score changes. Note that sellers of different products will consider your credit scores when making big purchases, including a vehicle and home.
Would you like to get your credit scores back on track? If yes, consider using a website known as Credit Sesame. When you visit the site, you will see your credit scores, debt-carrying accounts, and insights for getting more points. According to one of the users of the platform, he was able to improve his scores by nearly 300 points. It takes a few minutes to register.
Lower Your Monthly Bills
Are you looking for ideas for reducing your periodic expenses? Some options, like car insurance, will enable you to save hundreds of dollars. In most jurisdictions, it's illegal not to have car insurance. Cutting back on car insurance doesn't necessarily mean you will be in trouble.
A site called Savvy enables car owners to find the best rates in seconds. You can save about $826 annually by using the platform. You need to connect your current insurance for this to happen.
Once you are done, the website searches hundreds of insurance providers and finds better deals for the same coverage. What about the old policy? Savvy will help you to cancel it and get a refund from the current insurer for free. You can switch immediately after finding a good deal.
Offer Protection for Your Family
What would happen if you are no longer there to provide for your family? How will they cater to the bills and tuition fees? Start making plans by buying term life insurance. You probably think that you do not have enough time and money for that.
With Bestow, you can leave your loved ones up to $1 million. The applicable monthly rates are as low as $16. The company offers instant term life insurance quotes for individuals under 54 years.
AmOne Can Pay Your Credit Card Bills
With AmOne, you can consolidate your credit card debt into one monthly bill. Your credit card companies may be charging high-interest rates. If you owe them a maximum of $50,000, the platform will match you with an affordable loan for paying the balances. This means you will only have one monthly bill.
Contribute to Your IRA
Everyone plans to retire someday. If you have an IRA, ensure you contribute as much as you can this year. You can deposit up to $6,000 this year. If you are aged 50 years and above, the maximum amount is $7,000. Note that the contributions are tax-deductible.
Only Pay for the Streaming Services You Need
Many people have subscribed to various services during the quarantine period. You don't have to pay for all of them in 2021. If you have subscribed to several platforms, consider taking an inventory of the ones you are using. This could be the best time to cancel some of them. Do you still have cable? You can save some money by opting for a streaming service.
