Budgeting in 2021
This is a whole new year and yet it feels as though time has expanded in some sense, and wrapped 2020 in a bubble of chaos. We all need a fresh new start, and the new year allows us to start being positive and striving to be our best.
Budgeting is a perfect way to get a handle on the chaos around us. It gives us peace of mind and an understanding of what is going on with our finances rather than worrying about unexpected expenses or swiping a card in the hope that it will be accepted.
If you are thinking about setting up your finances in a more orderly fashion, you aren’t alone. 2020 caused havoc with many folks' cash flow and savings. The unpredictability has caused anxiety in many when it comes to money.
Nearly 9 out of every 10 Americans feel anxious about money due to the Coronavirus Pandemic. 30 percent of full-time employed U.S. adults said that they would create or revise their budgets because of the pandemic, according to Lincoln Financial Group’s Monthly Consumer Sentiment Tracker. 41 percent said they would like to save more for retirement.
Another study conducted by the Harris Poll found that Covid-19 had a severe impact on worrying about finances. 48 percent of folks are worried about being able to pay their bills and 28 percent were stressed the most about their utility bills.
This just goes to show that setting a strict budget in place is necessary for 2021 if you want to be able to get through to the other side of the pandemic relatively unscathed. At the very least, you want to be in the driver's seat rather than careening down a scree slope of debt. At least 40 percent of us have already cut expenses going into 2021.
Personal finances aren’t the only ones that have taken a hit. Companies are struggling to stay afloat and desperately trying to work out how to survive and keep their staff paid.
Budgeting under these strenuous conditions is beyond tough. No matter what you are selling, this next year is going to require flexible sales goals and realistic expense plans.
Working out projected sales figures can be tough right now unless you sell PPE. Your sales figures will depend on how the pandemic has shifted consumer buying behavior. Will you need to invest in product changes, or a new marketing campaign with social distancing? Is there any new technology required or protection screens at the till area you need to be fitted? What added costs are there and where can you save?
No matter whether you work from home and have your own business or are a CEO of a company, 2021 is going to be a challenge and a budget is essential to getting the best out of the year ahead.
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