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5 Tips For Financial Success In 2021

No matter what your goals are for this year 2021, there are some fundamental basics that can be followed for a successful year financially.

Today, as we continue to live through a global pandemic, let’s look at five key tips that will help us get ahead financially this year.

Know where you are and get financially organised

Financial progress can only be made when you know where you’re starting from. So before you take any action steps, it’s important to fully understand your current financial situation. If you don’t know where you are financially, you won’t know where you are going.

Your response to these questions is very crucial: What is your net worth (how much you own minus how much you owe)? How much do you earn? Where does your money go? How much do you spend? What percentage of your earnings do you save? How much do you owe? How much do you invest? What is your credit score?

Financial success is only achievable by a few who have a strong destination in mind — vision, goals, dreams and ambitions.

Start paying yourself first

If you don't follow any other financial advice this year, follow this one: PAY YOURSELF FIRST! The concept is simple: every payday, the very first thing you do is set aside a percentage of your income in a savings account. You do this before you pay the rent/mortgage and before you pay any other bills. You “pay yourself first.”

One common mistake that people make when it comes to saving their money, is to try and save what they have leftover from their paycheck at the end of the month. But more often than not, there is no money left and so they end up not saving anything at all. By paying yourself first, you'll find that your spending habits will adjust to accommodate the amount of money you have leftover. So, if you follow this simple principle, you'll always be able to save.

Paying yourself first takes a long time to develop as a habit because there isn’t immediate gratification. But, take it from me, it really works. If you do nothing else to improve your finances, this would be the thing to do. You won’t regret it!

Pay off your personal debts

Personal debt is a wealth killer. Financially, borrowing to consume is unwise. Debt simply makes everything much more expensive. The high interest and fees eat up cash that should be used to invest in your future. Debt saps your efforts to make more money.

Whether you have credit card debt, auto loan, consumer debt, student loans, or personal loan debt, the first thing you’ll want to do is understand exactly how much you owe and what your interest rate is. Then create a clear debt repayment plan and stick to it. The easiest way to follow through on your debt-repayment plan is to make your payments automatic.

The sooner you can get out of the red, the better your financial future will look.

Emergency savings is a must

If you ever doubted the importance of emergency savings, the Covid-19 pandemic has made it clear just how necessary a cash reserve can be. Unfortunately, some people still think emergency savings is a dumb idea because it yields little or no interest while sitting in a savings account. Let me pause quickly and drop this here: “Emergency savings is not supposed to be an investment. It is an insurance with one purpose: to protect you and your family during a personal finance crisis.”

Open an account specifically for emergencies and work toward saving up three to six months’ worth of expenses. The exact amount that makes sense for you ultimately depends on what you feel you need stashed away in order to sleep well at night, but six months’ worth is a good goal. This fund is a financial buffer for when you are confronted with unexpected situations that could cripple your finances.

The key secret to saving money is to make it automatic. So set up a recurring, monthly deposit from your current or checking account to your emergency savings account. Commit to consistently putting a portion of your income (1-5%) into your emergency fund account until you reach your goal amount.

Surround yourself with positivity

When it comes to your finances, are you hanging around people who are constantly complaining about their money situation and whining about how getting out of debt is not feasible? Or are you surrounding yourself with successful friends? And by success, I don’t mean mega-millionaires, but those with a financially positive mindset who share similar goals of what financial freedom truly means.

To achieve great heights in your personal finance, you must fly with the best. Your inner circle must not be filled with negative people and complainers whose vocabulary is centred around why things don't or won't work. Surround yourself with people who support and encourage your financial goals. Ensure you are around those who understand that it’s not about "No"… it's about "How".

The friends you choose can change or influence your course in life. You have the power to choose who is in your inner circle. So surround yourself with positivity and choose your lieutenants carefully.

Article written by:

Oyenike Adetoye

For: The Sister Sister Global Network

Oyenike is an author, financial management coach and public speaker on all this personal finance.

Visit to learn more about her work.

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