SAN ANTONIO — If you can’t wait until 2020 is over, you’re not alone. But before you say goodbye, ask yourself: Will 2021 will be any different money-wise? Here’s a quick year-end financial review.
2020: Year in review
“I would use 2020, which was an extreme year both in our world and financially, as a research project. Go back and look at what did we learn from 2020. Did I not save enough? Did I overspend? Did I get too emotional with my investment portfolio and really make some really stupid decisions with that? Or did I stick to the plan?” suggested Karl Eggerss, senior wealth advisor and partner of Covenant.
2021: Look ahead
"I would be very cautious about overspending in 2021,” Eggerss said. “A lot of people, if the pandemic is behind us, they’re going to want to travel. They’re going to want to see friends. They’re going to want to go out to restaurants. They’re going to want to hang out with friends at a bar, whatever they like to do. There’s an opportunity there or potential hazard.”
Set specific goals that are realistic
“What is realistic for you and your family? Don’t worry about what your neighbors are doing. Don’t worry about what your friends are doing. They may be buying cars or houses, new technology. You need to look at your financial reality. How much money is coming in the door, and what’s appropriate for you to save and spend in your household?” advised Eggerss.
Reward yourself
“I’m a big fan of setting up a discretionary account. Maybe it’s your 'fun money,' some people call it,” Eggerss said. “Maybe you have extra savings after the bills are paid, after your emergency fund is all set up. If you have this discretionary spending account, you don’t feel guilty for spending it. If it has extra money at the end of the year, great. But if it doesn’t and there’s zero at the end of the year? Fantastic. You enjoyed yourself and you already planned on that.”