The year 2020 has been a particularly unique roller coaster ride! From the change in the way we live to tackle everything from the confines of your home, we’ve come across a whole new picture. No one anticipated the course of this year to be the way it went down. And before we could identify ways to make the most of this year, we already reached its end.
We know what’s done is done, so it is time for us to make a list of all the things we learned from this year and prepare our resolution to maintain a better financial standing in 2021! CRIF can help you determine your new year’s resolutions that will not only help you sail through the upcoming year, but will also help you maintain a healthy credit score.
Related Reads: 5 habits to maintain a healthy credit score
Here’s your list!
Make a realistic budget and stick to it
You are well aware of how much money you need to pull through a month. Right from the supplies, you need to the extra expenses you have coming. This means you can easily identify how much you need and how much you can set aside for savings and investments. This way you will also be able to stay away from a pile of rising debt.
Keep in mind that you cannot cut down your basic expenses to save more. In fact, keep a sum in the ready cart for emergencies. Don’t try to give too much too fast as it could land you in major financial troubles.
Add more to your emergency fund
Considering the previous year and the rally of its unforeseen circumstances, take this year to build up your emergency fund. It is always important to keep surplus aside for times such as medical emergencies, etc. The year 2020 has taught us that anyone can require medical attention and immediate access to money, and every individual should have a comfortable chunk of an emergency fund.
Save money for retirement
You will be another year close to retirement and a fund to keep the new chapter in comfort will require effort through your working years. Setting up a retirement fund is an ongoing process. So divide your surplus money wisely to ensure that you have enough at the time of retirement.
Evaluate your portfolio and invest better
Take time out each year to evaluate all your investments and analyse which are the ones bringing in maximum promise for the long term. There are many instruments that might seem like an attractive choice at the time but over time, they are unable to deliver and stagnate your portfolio. It is best to sell these instruments and research more on what could work for your investment plan in the next year.
Find alternative sources of income
There is no harm in having an extra income. More income means more savings as well as more investments for the future! Try to devise a plan to buy a property that can be put on rent or some other investment options that can help you gather that extra income.
Work on your credit score
All of these efforts would be best carried out with a good CRIF Credit Score, so make sure you have all the information in place and staying away from too many hard inquiries. Plan ahead and stay up to date on your credit lines and don’t make any mistakes in the upcoming year. A few solid steps like the above could make sure that all your plans get executed.