Three (3) Money Tips for 2021
A new year is among us! Each new year is an opportunity for new beginnings and an abundance of wealth. Last year, we posted the article 3 Money Tips for 2020. As we enter into the upcoming year, CapWay would like to continue helping you on your money journey. Below are three money tips to help boost your financial prosperity in 2021 and beyond.
Be specific about your goals.
The New Year will allow you to get a fresh start on your money goals. Setting financial goals help you to gain purpose by prioritizing what you want to achieve. However, many people don't stick to their goals because they aren't specific, making them hard to achieve. If you want to have a greater chance of achieving your financial goals, consider the following two things:
- Set S.M.A.R.T. goals.
S.M.A.R.T. is an acronym that stands for Specific, Measurable, Action-Oriented, Realistic, and Time-Bound. Each criterion has an aim to help you better achieve your goals. Use the S.M.A.R.T. goal chart to guide your goal-setting process, focus your efforts, and increase the chances of achieving your goal.
- Focus on your daily habits.
Setting goals is an important part of achieving success, but your daily habits will get you there. A powerful James Clear quote that can give you more clarity on why habits are important is, "You do not rise to the level of your goals. You fall to the level of your systems. Your goal is your desired outcome. Your system is the collection of daily habits that will get you there."
Know your numbers.
A spending plan, also known as a budget, is essential to help individuals and businesses know where their money is coming from and where it's going. Unfortunately, many people view a budget as a restriction on their money, but it actually gives you more freedom.
Regardless of where you are financially, you are more in control of your finances when you have a spending plan.
Apply your knowledge.
When you learn something new about finances, like a new way of budgeting or finding ways to build wealth, you must apply the knowledge you have learned. If you gain knowledge without putting it to use, you don't receive any financial gain, and you are merely entertaining the thought of a better financial life.