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Financial Wellness Tips for 2021

Financial Wellness Tips for 2021

Financial Wellness Tips for 2021

12 important tips and goals for Financial Wellness

Financial Wellness is our personal relationship with money. How effectively we manage our money now as well as the future determines our ability to create security and freedom. Setting goals with our financial well-being in mind is one of the best ways to combat the fear of retirement.

As entrepreneurs in the Wellness Industry [ that does not cater to our financial future]; It is essential to operate our business and manage our lifestyle for the short and long term

One of the best ways to accomplish this is by setting meaningful goals that are in alignment with our financial life. 2020 may have been a rough year for most of us but as we add these financial wellness tips and goals each month, we can make a difference in our financial future.

Here are some suggestions to help you plan 2021 with your financial goals in mind from organizing your paperwork, budgeting, and saving tips.  Whether you are a professional yoga teacher, wellness entrepreneurs or coach, it is imperative that we set aside money for our retirement.

Tip: Check out a traditional Roth IRA:
Goal: The annual contribution for 2021 is $6000 for the year.

Let’s balance the next 12 months to achieve that goal.

January: Organized yourself and set clear financial goals.

Get organized by decluttering your finance. Make a list of your most important bills, method of payment and filing system. Create a budget for the New Year and decide the best way to track your spending, for example electronic or paper.   
Set short- and long-term goals. A short-term goal may be building your emergency fund by committing to a set amount each month, long term could be paying off a particular debt by a certain date.

Tip: Mark your calendar with estimated tax payment dates. First quarter due by January 15.
Goal: Set aside $500 ($125 per week) this month towards your retirement … pay yourself first.

February: Financial well-being is self-love.

Your financial security and financial freedom depend on the love you show yourself today. Grab your significant other and show your finance some love by setting goals together and adjust your budget accordingly.

Tip: Get all your tax papers together (W-2, 1099’s etc) get ready for filing.
Goal:  Set an amount to building your emergency fund ($1000).

March: Get focus and Recommit.

Sometimes things just don’t go the way we plan. However, since the Wellness Industry does not have a built-in retirement plan. Focusing on your long-term goals is essential so let’s recommit. Get strategic with any extra funds.

Tip: Commit to filing taxes early.
Goal: Paying off a debt.

April: Spend less Save more.

April is financial literacy month. Give yourself some love because you have taken control of your financial future. Look at your first quarter and challenge yourself. How can you reduce your expenses and increase your income?  Check recurring expenses reduce where necessary or increase by creating a new offering.

Tip: Tax deadline April 15 extension mid-October.
Goal: Track all your spending this month – self awareness.

May: Invest better.

Review where your money is invested and what it is doing for you. Check to be sure your investment fees are low and your funds outside of retirement plans are tax efficient.
We are counting down to the first day of summer so let us take some time to see where we are investing our money and whether it’s working for you. Check on those investment fees, retirement plans and emergency savings.

Tip: Check your debt-to-income ratio and celebrate your small wins.
Goal: Create a summer budget and increase your emergency fund.

June: Automation is not bad.

How is your method of payments and filing system working? Automating your finances ensures that you are paying your bills on time while avoiding costly late fees. Putting your money on autopilot allows you to put away your savings. Challenge yourself to increase your 401 (k) or other investment. 

Tip: Second quarter estimated taxes are due June 15.
Goal: Review your bills. How many can you automate monthly?

July: Earn more in 2021.

It’s mid-year. A re you meeting your financial needs or do you need to invest more to reach your goals? Focus on your business or career at this mid-point in the year, so you can set yourself up better for year-end bonuses or contracts. At home, sell something you do not need to help pay for something you really want.

Tip: Midyear budget review are you hitting your target spending and saving targets? If not, make some adjustments and be kind to yourself.
Goal:  Save more than you spend. Increase your prices, ask for a raise or create a new offer.

August: Credit Score Check up.

Since we are all at different phases of our financial wellness journey let us pause and to this one together. Whether you need it or not it does not hurt to know your numbers. Check with one of these three vendors for a free credit score checkup TransUnion, Experian, and Equifax.

Tip:    Add some extra money to your IRA or 401(k).
Goal: write a letter to a vendor requesting removal of any negative claim on your report.

September: Educate the family.

Since it is no secret that the wellness industry doesn’t come with a built-in retirement plan, which leaves you worried and fearful for your financial future.  Why not take steps to educate our family about your financial goals. Make it special to celebrate, show them the budget, celebrate the wins, and set goals together.

Tip: Third quarter estimated taxes due September 15 if you are self employed.
Goal: Read a financial book and share with family.

October: Financial Self Education.

You do not need to be a financial expert to manage your money so always strive to learn more through self-education. What have you learned by sticking to a budget this year? Has your long-term saving increased? Reading material about personal and business finance is one way to take control of your money.

Tip: Tune into Dave Ramsey, read blogs like Forbes investing, Profit First is a must as an entrepreneur.
Goal: Attend a financial conference and network.

November: Get ahead to stay on track.

It’s November let’s be grateful that we have stayed committed to a budget this whole year or at least try. The point is you are more aware, and your long-term savings have increased. Having your financial act together will immensely ease the struggle of earning a living doing what you love. 

Tip: Review all long-term documents such as health insurance, estate planning, insurance plans etc.
Goal: Saving Review; close the gap by 10% or whatever is necessary to complete.

December: Donate and be tax wise.

Even in December money matters as it’s the season of giving. Your time and talents are valuable resources to give but if you choose monetary donation seek ways that benefit you tax wise. It helps to break down your money each month into different areas keeping in mind that your goal is to set aside money for your retirement.
 
Tip:     Start setting up your budget for next year. Looking into an IRA account and contributing the max if you’re not already doing so.
Goal: Focus on quality over quantity. Have a heart to heart with your dollar before spending it on gifts or stuff that does make you happy.

Conclusion to your 2021 financial wellness plan.

Visualizing the most important things in your life and financial goals and what it takes to accomplish them is key to setting aside money for our retirement. Sharing the gift of healing while neglecting your long term financial selfcare is reckless. 

Your 2021 Budget Sheet



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