An FDA-approved Pfizer-BioNTech vaccine is now being distributed around the United States, a positive sign that the coronavirus outbreak is finally coming to an end and a hint that the economy will recover in 2021
Although things are changing for the better, it may take a while for the vaccine to be distributed to everyone. Right now, only those on the frontlines, healthcare workers and other essential workers, and perhaps vulnerable populations, like seniors, will get it. After this phase, the government will have to purchase more for the rest of the population, which will occur later on next year.
Still, long before the return of normal life, there is plenty you can do to improve your personal finances:
Pay off Your Credit Card Debts
You can pay up all your debts with a consolidated loan. Now, instead of paying a flood of credit card bills showing up in your mail, you’ll only have to pay one bill a month.
Harrison Funding, a consolidated loan lender, helps clients create a repayment plan based on how much a client can afford to pay after calculating their monthly income and expenses. Creating an affordable repayment plan benefits both clients and lenders. Clients no longer panic over how to come up with the money every month, and lenders are reassured clients will easily meet their financial obligations every month.
Besides the convenience of paying off all your credit cards in one go, a consolidated loan will also improve your credit score because you will be paying your installments on time every month, month after month, like clockwork.
With a consolidated loan, you won’t be inundated with an avalanche of credit card bills; and, what’s more, with a consolidated loan, your credit score will get better, not worse.
Learn How to Save
Used well, savings can play an essential role in helping you rebuild your financial life. The purpose of opening up a savings account is not merely to increase your financial security—by building an emergency fund or creating a retirement account. It can do so much more. You can use it to build your wealth through prudent investments. When you save regularly, tantalizing possibilities emerge.
One reason people don’t save enough every month is not that they don’t see the obvious benefits of this financially-sound habit–they don’t know how.
Here are four simple, effective methods to save regularly:
- Pay yourself first before anyone else. Deduct a percentage of your income. Many people prefer to deduct 10% and squirrel it away in a savings account.
- Set a goal to build an emergency savings fund. Do this in stages. First, save enough money to sustain yourself for three months. When you reach that goal, try to stockpile enough savings to manage six months of expenses.
- Live below your means. When you don’t spend everything you’ve got every month, then you’ll save something each month. Over time, your savings will grow.
- Prioritize your spending. When you only focus on only buying things that give you value, you won’t squander as much money. You’ll buy fewer things you don’t need at all. With your priorities in place, you’ll be less vulnerable to tempting advertisements and less vulnerable to retail therapy.
Avoid Spending Money to Make Money
The return on investment in buying a “business in a box” that will give you a product to hawk or a “money-making course” that will teach you how to make money is not as high as you might imagine based on the expertly crafted sales letter you read or the silver-tongued spokesman you hear.
Take “get rich courses” for example.
Although not all courses on how to make money are get-rich schemes–some do work– few people get rich this way.
Unfortunately, even if you buy a legitimate course, one created by someone sharing their secrets to success, may not work for you. It may not work because you don’t finish the course, because you don’t have the resources to follow through, or because your gentle personality does not align with the aggressive business model.
In summary, the approval and distribution of a new vaccine certainly indicates that 2021 will be a better year for the economy, but, rather than waiting for things to turn around, it’s best to take proactive steps to improve your personal finances now.