Financial Tips for the New Year

Now that 2020 is in our rear view, and we've welcomed a New Year with open arms and a sense of optimism people are eager to look to the future and apply some hard learned lessons from the year gone by. And with the rollout of a vaccine, there is certainly cause for optimism from business owners.

Those businesses who managed to survive the past year are more than happy to have their doors open again. The full effects of lockdown on many industries is yet to be seen. And while some are predicting an economic boom once restrictions are fully lifted, there are many industries that have been hit particularly hard, if not completely devastated. Among those effected the most are industries of travel and tourism, entertainment, and small business — especially the retail and restaurant industries. 

But on a personal level, since the New Year is often a time when we take stock and at least try to set new habits in motion, let’s take a look at some tips for the New Year:

Utilities

As you can imagine, home utility costs go up and down depending on the season. Electricity costs run higher in the middle of summer as well as in the colder months to keep your home at the desirable temperature. Be mindful of your utility usage habits, and find ways to cut down on gas, electric, and water bills.

Shop local

Small business owners can certainly use the help of their local communities nowadays. Locally owned and operated stores are still fighting the good fight, and if you have the option, use them rather than the big guys or ordering online.

To put it in perspective, over 40 percent of businesses reported that they were temporarily closed during the past year. That’s a lot of people who could use some help from the local community.

A new wardrobe might be on your list of things to buy in the New Year, but the price tag on designer clothing from big labels and stores can add up quickly. Instead, consider supporting your local small businesses and getting great deals on good quality items at the same time.

Look for deals

Coming out of a very trying time, there will be some retail stores looking to gain your business by offering very attractive deals and discounts.

Exercise

Every year, gyms see a spike in business after the New Year, and losing that “lockdown weight” is probably quite high on the list for people venturing out of the house again. But for a lot of people, gyms may not seem that appealing for obvious health concerns — think about all those germs! Instead, save some money on the gym membership and get out into nature. Hikes, jogging, cycling, etc., and similar activities are not only great for your health and immune system — they’re free of charge!

 

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC