21 Financial Goals for Clients in 2021

2. Grow Savings by Banking Your Former Commuting Costs

“If you've shifted from working from an office to working from home, consider re-directing your old commuting costs into a savings account,” says Jina Etienne. “Keeping track of this ‘found money’ and saving it promptly can bolster your financial wellness substantially.”

(Photo: Shutterstock)

3. Take Advantage of Any Debt Reduction Resources Available

Many Americans are struggling to make ends meet and keep current with debt payments, but they shouldn’t assume debt repayment terms are locked in, says Michael Landsberg. “Consider resources such as a forbearance on your mortgage or negotiating more flexible payback terms with your credit card company or landlord. It is always best to know all the options available.”

(Photo: Shutterstock)

4. Check Your Withholdings

Only a quarter of tax-filing Americans have filled out the new Form W-4, released at the end of 2019 by the IRS, according to Kim Hardy. “If you haven’t updated your withholding in the past year already, it’s a good idea to revisit that now to help make sure you avoid a surprise come Tax Day. If you feel more or less tax should be withheld going forward to fit into your financial plan, contact your human resource representative.”

(Photo: Shutterstock)

5. Improve Your Own Financial Literacy

“Education is an investment in yourself,” says Matt Rosenberg. “There are many sources for financial advice but blindly trusting just one of them can be a very expensive mistake.” Rosenberg recommends resources on the AICPA’s 360 Degrees of Financial Literacy website, and points to articles in “The Basics” section as a good place to start.

(Photo: Shutterstock)

6. Create a Budget

Start the new year by collecting all your recent bank and credit card statements, as well as sources of income and spending to create a baseline of income and expenses, says David Almonte. “Once you have a baseline, you can start breaking down expenses into needs and wants. The goal here is to weed out any ‘want’ that is negatively impacting your overall spending plan.”

(Photo: Shutterstock)

7. Get the Kids Involved

It’s never too early to starting molding good money habits and behaviors at home, says Tim Todd. “Commit to helping your kids build a solid financial literacy foundation in 2021.”

(Photo: Shutterstock)

8. Take Small, Consistent Steps to Boost Savings

Making small deposits on a regular basis over a long period of time can yield significant results, according to Jina Etienne. “Even just an extra $10 a week deposited into a savings account will add up to over $2,600 in five years. If you can commit to $25 a week, you’d have over $6,500 in five years.”

(Photo: Shutterstock)

9. Schedule Regular Budget Checkups

“Having a budget is the first step to getting a handle on your finances,” says Tami Bolder. “Once you understand where your money is coming from and what it is going towards, stay on top of it and check in regularly to make sure it is working for you.” Reviewing your bank and credit card statements will be helpful in determining where you may be overspending.

(Photo: Shutterstock)

10. Start an Emergency Savings Fund

Disasters — whether hurricanes, wildfires, floods or even a pandemic — can lead to unexpected costs or disruptions to one’s income. “Be prepared for life’s curveballs by having an emergency savings fund,” says Todd. “Typically, three to six months of expenses is desirable; even if you can’t save all of that now, start small by contributing whatever you can afford each pay period or month and build up the savings over time.”

(Photo: Shutterstock)

11. Get Estate Planning Documents Drafted or Updated

Having in place documents such as a will, an advanced medical directive and a durable power of attorney in the event of death or incapacity can make a challenging time more manageable for your loved ones, according to Todd, who warns that estate planning documents “can get ‘stale’ due to time and life changes. It’s important to make sure your documents work for you and your wishes.”

(Photo: Shutterstock)

12. Be Prepared for Natural Disasters

In the event of a natural disaster, there are documents you will need right away; others that you may not need immediately will be very hard to replace if they are lost or destroyed. Neal Stern notes that the 360 Degrees of Financial Literacy “Disaster Action Plan” sets forth easy steps all Americans should take to protect their family and their finances to help ensure they are prepared for the financial effect of a natural disaster.

(Photo: Shutterstock)

13. Create a ‘Crisis’ Budget for Times of Uncertainty and Financial Distress

In anticipation of an income interruption in the future, Landsberg recommends putting together a crisis budget that includes only money you absolutely have to spend over three months: the amount you need to cover with any severance, unemployment, emergency fund and any other income you can bring in.

(Photo: Shutterstock)

14. Banish Recurring Charges

“Automatic payments, such as retirement contributions, can be a great way to save consistently over time; however, on the flip side, automatic withdrawals for subscription services can wreak havoc on your finances if not kept in check,” says Almonte. “Taking a hard look at your statements and canceling services you rarely or never use is an easy way to give yourself more money every month.”

(Photo: Shutterstock)

15. Use Lower Interest Rates to Empower Debt Paydown

While lower interest rates can lower the required payments on variable-rate credit cards and other debt, says Stern, keeping up the same payments you made before a rate decline will reduce the amount you owe faster and reward you with greater interest savings in the future. “Take advantage of this great opportunity to painlessly bring down debt.”

(Photo: Shutterstock)

16. Shop Around for Higher Interest on Savings

“With interest rates lowered by the Federal Reserve, banks are quick to jump on the bandwagon by reducing the rates they pay consumers on savings, often to near-zero,” says Stern. Some may pay much better rates than your own bank. “It pays to shop around, including a look at online banks and credit unions, to make sure you’re earning the best rate on your savings.”

(Photo: Shutterstock)

17. Get Started on Saving for Retirement Today

Even if retirement seems far away, it’s good to prepare now. “If you have not already, take time to understand your employer’s retirement plan options and be sure you are taking advantage of all the offerings and matches available,” says Jane Rubin. “Even if you can only afford to put away a little, through the power of compound interest, by the time you retire it can go a long way.”

(Photo: Shutterstock)

18. Consider Refinancing Your Mortgage

With rates at near all-time lows, many homeowners can get their monthly mortgage payments dramatically lowered, according to Landsberg. “Taking it further, certain homeowners with substantial equity locked into their homes can pursue a ‘cash-out’ refinance and use the proceeds responsibly for other debt reduction or necessary expenses.”

(Photo: Shutterstock)

19. Get Your Free Credit Report

With one free copy of your credit report (and one for your spouse/children) available from each of the three nationwide credit reporting companies, it’s good practice to review your credit report at least annually to check for completeness and accuracy, says Landsberg. “This will enable you to identify any errors and correct them right away. An incorrect credit report could be enough reason to deny you a job, loan request, or charge you a higher interest rate.”

(Photo: Shutterstock)

20. Automate Retirement Contributions

“Start the new year by automating the investment process and making smaller, monthly, recurring contributions,” says Rosenberg. “This will take less of your time and ensure your contributions do not get forgotten or delayed.” Doing this will also generate more wealth over time than making an equivalent one-time contribution at year-end because the longer money is invested the more opportunity it has to grow.

(Photo: Shutterstock)

21. Pay Attention to Your Money

Continuous attention to your finances is as important as healthful eating and exercising, according to Rosenberg. “This doesn't mean overreacting to market swings or over-trading. It means knowing your long-term plan and keeping a watchful eye to make sure you are following it. Investment services, fees and products change throughout time and you want to be sure you're always getting the best.”

(Photo: Shutterstock)