By this, you should have critically assessed how short your financial plan for 2020 fell, and made a new plan more in line with the economic realities of your life now. Last year so many people were caught off guard by the coronavirus and the pandemic it spawned, so it’s likely time for a reset. What is the state of your savings and spending? This is especially important after the holiday season when people tend to spend more than usual, even during a pandemic. Using bank statements from the last nine months determine what your spending patterns are. Have you observed a spike in spending, while your savings seemed only to haemorrhage? Has that spike in spending after the first panicked months of lockdown now tapered off and you are witnessing somewhat of a return to pre-COVID form? Or has your spending been more or less in freefall, to the point where it’s now almost non-existent, because at some point you consciously or unconsciously thought to yourself: Why bother?

If you are one of those people for whom the past few months did not do too much damage to your saving and spending targets, kudos to you. If not, don’t worry. A new year affords the opportunity to reset, by way of making a new financial plan that realistically reflects your income and expense expectation and align with your short-, medium- and long-term goals. It’s time to rebuild.

Earn more income

This is not meant to be insensitive to anyone who has taken a substantial hit in the region of income and benefits, especially when there might be lingering uncertainty about the not-too-distant future, and the reason for the decrease has really nothing to do with you but rather on the financials of the company you’re employed to.

Here are some ways to improve your earnings:

1. Invest in yourself. Sometimes, it’s not something as big as a university degree as it is an online course for improving on a skill you already have, like baking, website building, for instance. Make yourself marketable. During lockdown, deejays were hosting dance parties that were parlayed into income-earning opportunities in light of the global cancelling of entertainment events. Take a course that gives you practical knowledge that you can employ, rather than the often theoretical ones that form a good foundation but don’t tell you exactly what to do.

2. Create passive income. Start a business in which you do not actively participate, like an e-shop, a blog, a YouTube or niche video and maintain it online as you effortlessly earn. Invest in the business of someone you trust or in rental income. Rental income doesn’t always mean property rental; think of what you have access to, like tools, cars, tile/carpet steamers.

3. Trim the fat from your life. This may seem abstract, but, sometimes, toxic relationships only serve to weigh you down, keep your head in a fog, and make you incapable of visualising the infinite possibilities about the strategies you can use for wealth creation. Excising negative people from your life has the surprising ability of de-cluttering and eventually bringing clarity to your mind.

Boost your savings

In a recent survey conducted by Credit Karma, one-third of Americans revealed they aimed to pick up a new financial habit for 2021 after the lessons of the pandemic: Starting an emergency savings fund. The survey also noted that women were particularly hard-hit by the pandemic as a result of being in some of the most low-paying jobs as well as being the primary caregivers of children and older family members. The following are a few practical tips to put money into your savings account.

1. Start saving again, immediately, and with whatever you have at your disposal. This is to be earmarked for an interest-bearing account or investment that you won’t raid, going forward. At a later date you can make higher payments, but it is important to allow your money to start making money for you right now.

2. If you’ve always toyed with the idea of investing, there’s no time like the present. Speak to a financial advisor about what your options are regarding stocks and bonds, the amount you have available for investing, and what your risk appetite level is.

3. In addition to cutting back on more obvious expenses, like clothes, dining out and entertainment, consider perhaps moving into more affordable rented housing. Or, if you’re a homeowner whose space is big enough, maybe think about temporarily renting out a room to, say, a university student. Empty-nesters could consider renting their abode and rent something smaller and cheaper, creating cash flow from the difference. Plus electricity and upkeep reduces as well.

Last year was difficult on so many fronts. If your financial goals fell short, don’t be too hard on yourself. You have the opportunity of getting back on the horse and doing better. Do not give up. Nobody is perfect, and the journey to financial well-being is a constant work in progress. Develop a new and realistic financial plan that prioritises both savings and income generation, while focusing on tips to help you achieve your goals and you can be well on your way.