By John Petit of CU Insight
I don’t think anyone saw 2020 going the way it has. With job security at an all-time confusing level and viruses popping up out of nowhere, it’s a great time to make sure your accounts are ready for whatever comes next. Here are three ways you can make sure your money is in good shape going into 2021…
Stop acting on impulses
If money isn’t really a problem for you, that’s great, but bad habits can come back to haunt you. Think about your spending habits. Do you make impulse buys any time you want? No matter how big or small, impulse purchases can lead to trouble if things are suddenly not going so well. If you have a pile of entertainment subscriptions, do you know which ones you’d cut loose if your budget suddenly tightened? Hopefully, when COVID leaves us, it’ll be saying “peace out” and never coming back, but if 2020 has taught us anything, it’s to expect the unexpected.
Know how to use a credit card
Enjoying the use of a credit card can be dangerous, especially in the crazy times we’re currently in. Even if you find it pretty easy to pay off your purchases each month and you love earning cash rewards, what are you going to do if you drive to work one morning and find your office swallowed up by a giant sinkhole? Yeah that seems unlikely but like I said earlier, it’s 20 freakin’ 20.
Look to the future
Have you saved enough to enjoy retirement one day? Are you going to be able to leave anything to your kids? There are a lot of questions and uncertainties when it comes to your financial future. Even if you don’t have heirs, humans are living longer than ever these days and you want to make sure you don’t outlive your savings. If you haven’t checked in with your financial advisor lately, use the unpredictability of 2020 as an excuse to at least have a quick conversation with them before the end of the year.