Financial Tips for 2021
We can all agree that 2020 has been a rollercoaster of a year to say the least! With 2021 knocking at the door, it's time to take some very basic steps for a better financial future.
1). Start paying yourself 10%!
This is a very simple thing that most people choose to ignore. DON'T. Say you're making $3500 a month and each month you start paying yourself 10%, or 350$. Over the course of the year that would mean you paid yourself $4200. If invested at an average annual rate of 6%, after 10 years you would have grown to $57,143, if done for 20 years you will have over $159,476! and after 30 years that 10% will have grown to $342,740!
2). Stop buying liabilities and start buying assets!
I'm not talking about never getting a car, or a new house, etc. However, you saw what $350 a month in the market could bring (Keep in mind, S and P 500 average is about 8.5%). Instead of buying the most decked out car, or the new iPhone every year, or the Xbox or PS5. Take the opportunity to look at where you can invest that money so that way a year, 3, or 5years from now, you'll have even more money to buy the car cash, the Xbox wouldn't be your whole paycheque, or the down payment on that home can be well over 20%
3). Limit Eating Out
Not only is it healthier for your wallet, but your doctor will stop hounding you about your high cholesterol. Too busy? Meal Prep. For 10$ I can have a lovely steak dinner for the family, compared to the Quarter Pounder Meal from those lovely golden archs we all love
4). Buy a Return of Premium Term!
Can't find yourself the will power to save? Buy a Return of Premium Term! It's the only place where you can take $50, $100, $200+ a month, and turn it into $750,000 overnight for your family if you pass away, but if you don't (Which there's a 98% you won't) then you'll get all the money you put into the insurance plan back in a fat, tax-free check! Boom, instant boost in your retirement funds, or use it to pay off any debts you have ;)
5). Pick a hobby you love doing, and start making money off of it!
Everyone has something they absolutely love to do, so why not make money off of it! I have a friend who loves knitting and crocheting and made around $4500 in her free time doing what she loves! Etsy, Fivrr, Facebook, Offer UP. There's so much opportunity.