I have spent a great deal of time over the last couple of months thinking about this new year. Planning my financial goals, working on a new budget and formulating a 5 year plan to tighten things up. The biggest criticism was me being all over the place. And you are right.
I do best with bite size pieces.
So I will tackle one financial goals one at a time this year…beginning this month.
2021 Goal #1 – Small Student Loan
I held off paying off my student loan until I get started in my new job this month. As soon as my pay comes in, I will make the final payment on the smaller of my two student loans.
This is a great way for me to start as I don’t know exactly what my take home pay is going to look like. Since we live on last month’s income, I won’t need to touch my new pay until February and it will give me this month to revise my budget once I see it.
I can then layout the rest of my goals for the year.
It’s really going to be different having a regular paycheck. On Monday, I will set up my automatic and pre-tax deductions. These elections will determine my take home pay. I have decided to start with:
- High deductible health plan – $250 per paycheck
- HSA – $250 per paycheck ($6000/24 pay periods, company contributes $1,200 which combined will max out the contribution for the year)
- Dental – $27 per paycheck
- Vision – $2.90 per paycheck
- 7% to 401K
Still to be determined – additional life insurance, accident insurance, cancer insurance and critical illness insurance.
Debt Free 2021 Goals
Try these budget platforms this year for a debt free 2021.
Platforms Fees and Minimum Best for
Personal Capital Free Monitoring wealth and spending
Simplifi Free Manage money everywhere
YNAB $84 a year or $11.99 a month (after a 34-day free trial), free for students for 12 months. Personal budget tracking