How to Set Post-Lockdown Financial Goals for 2021? is a challenge for most of us who are just beginning to learn about our new world.
It was a year of loss and uncertainty for so many South Africans, and many things are not too much clearer yet. But as people begin to see a post lock down future on the horizon some are ready to start getting their finances back on track.
Some might say that’s overly optimistic, but that’s not a bad thing.
Optimism pays off, according to research. Optimists are more likely to save for a rainy day, to advance in their careers and earn more money, and to be less stressed financially.
To be clear, financial optimism does not mean ignoring the daunting realities that many of us are currently faced with; rather, it means believing that we have the potential to conquer such difficulties and better our lives despite them.
Financial optimism necessitates recognizing that our setbacks are only temporary and that our financial circumstances are not the product of a personal failure or fundamental character defect. Feeling ashamed about our financial situations – whether it’s a job loss or a debt balance – may make regaining control of our financial futures more difficult. Shame has been shown to cause a fight or flight response, impairing our ability to process information, growing anxiety, and causing us to withdraw rather than engage, according to studies.
So, in order to practice financial optimism, we must turn our attention away from our financial flaws, errors, and bad situations and onto what is working in our financial lives and where we can make progress.
With that in mind here’s a look at some sensible post lockdown financial goals for 2021 you can aspire to.
How to Set Post-Lockdown Financial Goals for 2021
Focus on Actions, Not Outcomes
It can be difficult to commit to any of our traditional financial targets when there is so much uncertainty. The spread of Covid and its effect on businesses, as well as how quickly vaccine distribution helps us to return to some semblance of pre-pandemic life, could have an enormous impact on how much money some of us can save.
Rather than waiting to see how things turn out, make commitments now, focusing on sticking to concrete actions rather than specific outcomes.
For example, until you know more about how business will look in 2021, you may not be able to commit to investing a particular percentage of your paycheck per week. However, you can commit to monitoring all your money each week and sitting down at the end of each month to determine how much you can afford to set aside based on the most up-to-date data and estimates available.
Whether it’s saving, spending, or paying down debt, by focusing on your decisions rather than your results, you can use 2021 to improve your foundational money behaviors, such as monitoring what you spend, updating your progress on a regular basis, and reevaluating your savings plans and objectives.
How to Set Post-Lockdown Financial Goals for 2021
Celebrate Small Victories
With so many unknowns and ongoing obstacles, it’s important to plan for delays and errors, which can happen even in the best of circumstances. Staying resilient requires cultivating financial optimism and self-compassion, as well as resisting guilt and self-blame.
Celebrate your financial successes and that will help you develop the habit of financial optimism. Recognizing and building on your financial successes is a valuable tool for staying motivated and optimistic, especially during tough times.
Although small habits like checking your bank statements once a week might not fix all your financial problems overnight, it’s important to acknowledge the benefits that these positive financial habits bring. Simple things like paying your bills on time and saving a few Rands will help you achieve bigger wins over time by training your brain to concentrate on success rather than perfection.
Stay Flexible
Many financial schedules and deadlines have been shifted as a result of the year 2020. As we head into 2021, it’s vital that we retain our flexibility so that we can adapt to our new realities and make appropriate changes.
Now is an excellent time to take a step back and rethink your financial goals. Do you want to concentrate more on building emergency savings and saving for retirement, or are big goals like buying a house still on your short-term horizon?
Consider tools and services that can assist you if you’re not sure where to start, what to prioritize, or how to adapt your financial plans to the current changes in the world. There are some great ones out there, and they can help you in all kinds of ways. Still a little unsure speak to one of our Professional Independent Advisors for more help.
Making Working Remotely a Positive Move