How to be financially prepared for 2021

2020 has been a difficult year for many working and business class people.

It has been a year where people lost their jobs, the main source of income, and some even lost their lives due to the pandemic.

The Government of India did try giving us some relief through a loan moratorium from March to September and then a relief in November.

Even though the relief did help us, it still cannot make up for what we all have lost in 2020.

Most are in debt, have unpaid EMIs, credit card bills, and have no idea what they can do next year.

Keeping this in mind, we have created a list of activities that you can follow to start 2021 on a good note.

Please Note – This is a generic list. You can change few entries as per your financial goals.

1. Create a Financial Map for 2021:

Let’s start the year with a Map. You will start setting goals for every month/quarter.

E.g. you can decide to repay your credit card bills by March and try your best to clean all debts before June.

Creating a map and a plan will help you start working on it until you achieve it. A deadline will motivate you to complete the goal.

2. Budget – Budget – Budget:

Apart from planning, you can create a monthly/yearly budget. While we don’t suggest cutting down on every expense, it will be wise to set a budget where you have enough money for investments, savings, and paying your pending debts.

3. Savings and Investments:

Finally, after you have created a plan and set your budget, you will know the minimum amount of money you can keep aside for savings and investments. This is important as there are many investments that can give you higher returns than your savings account. Hence study, research, set investment goals, to accumulate wealth in the future.

4. Retirement Planning is a must:

If you’re aged 21, 25, 30, 35, or even 40, planning for retirement is a must. This is because, with a retirement fund, you can live your life on your own terms. You won’t need to expect help from your children/relatives. Start planning early and you can set up a good retirement plan.

Overall, 2021 is just a few weeks away and hence we thought it’s best to share these points with all of you. You can follow this list, and make a financial plan for yourself. We hope that 2021 ends up being better for you than 2020. For any queries related to the best personal loan, best home loan, best business Loan, etc. you can connect with us online.

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