Cheers to Self Betterment in 2021
2020 has been a very rough yet enlightening year. I was able to start my Mobile Home Investing Business, I reached my goal of how much I wanted to invest in the secondary market and I avoided catching COVID! Now that 2021 has started, what are you doing to make sure you reach your goals? Have you even written them down yet? If not, start now and check in with yourself weekly. Let’s get into some news you should know.
Stimulus
The second round of economic impact payments are finally on the way! So, who’s eligible? U.S. citizens and resident aliens who meet income requirements and who cannot be claimed as a dependent on another person’s tax return are generally eligible. Income will still be based on your 2019 adjusted gross income the same as the previous stimulus payment. Individuals earning under $75,000 and heads of households under $112,500 typically qualify for the full $600 stimulus payment. Those married and filing jointly or surviving spouses earning under $150,000 usually qualify for a $1,200 payment.
If you exceed the income requirements, you may still receive a reduced stimulus payment, but the $600 payment phases out completely at $87,000 AGI for individuals and $174,000 AGI for couples filing jointly.
If the pandemic has taught us anything, it’s to have an emergency savings. It has also pushed us to really form those side hustles that create other streams of revenue outside of your main gig. With that being said, how do you plan to put your $600 stimulus payment to work? I have a few ideas…
INVEST
This can be your chance to open an investment account and put some money in the market. Even if you start small with $100 for example. It doesn’t matter, start somewhere.
Pay down CC Debt
Get a jump start on paying down credit card debt. Remember to start with your credit card that has the highest rate.
Donate a portion
Many of us have been blessed not to be effected financially by the pandemic. Meanwhile, others have suffered severely. If you can afford to, donate to a nonprofit that will help struggling workers. Here’s one I plan to donate to.
start that side hustle
Take that extra money and invest in yourself. Turn your passion into coins! Start that business you’ve been dreaming about. Remember, baby steps! Just get started!
Student Loan Extension
The forbearance period for federal student loans was originally extended to the end of December. There has recently been a new extension through January 31, 2021. As of now, borrowers are expected to restart payments in February.
Georgia Senate Runoffs
What is a runoff election?
State election officials declare a runoff election when neither candidate in a given election earns enough votes to clear the state-mandated percentage share. In most cases, the two candidates who earned the largest share of votes advance to a head-to-head runoff so that one is guaranteed to earn at least 50 percent plus one vote. Because the US Constitution leaves it up to individual states how to run their elections, they have varying thresholds to declare an outright winner.
Why is this important?
The two runoff elections could lead to an especially contentious and crucial battle for control of the Senate, determining which party holds power. With Joe Biden having been declared the winner of the presidential race, Democrats need three seats to win control of the Senate. Currently, Democrats have one seat in the US Senate in this year's election. In the case that Democrats manage to secure two more seats, VP Kamala Harris would have a deciding vote whenever there is a 50-50 tie. If this happens, they’ll effectively have the majority. This takes place on Tuesday, Jan 5th so stay tuned!
2021 Budget
If you didn’t have a budget in place during 2020, now is your time for a fresh start. First and foremost, make sure you are paying yourself first! Meaning, add a category within your budget for “Savings”. Think of your “Savings” category as a bill. Pay it every month! A good rule of thumb for how much to save is 20% of your income. I’m currently saving 30% of mine, but I’d like to save more. If you can afford to save more than 30%, that’s awesome! Put some of that money to work and put some away for emergency use!
If you already had a 2020 budget, have a look at it every month to determine where you can cut costs. Personally, I have a few monthly subscriptions that I plan to cancel and make those extra funds work for me. I also don’t plan to make any unnecessary purchases during the month of January. It’s a challenge to determine how much extra I could save instead of spending. To help jumpstart that budget, here are a few great budget apps.
#Blackfact | Nikole Hannah-Jones
Nikole | 1619
This month, I want to recognize Nikole Hannah-Jones. She’s a Pulitzer Prize-winning reporter covering racial injustice for The New York Times Magazine and creator of the landmark 1619 Project. Listening to the short series has changed the way I view the world as it is today. Not in a bad way, but more so in a well-informed way. It’s forced me to remember our history and how it’s shaped how we currently live. 1619 is an audio series on how slavery has transformed America, connecting past and present. If you haven’t had a moment to listen, please make time and thank me later. Here’s a link to the New York Times page where this audio series is located. It’s also on apple podcasts. If you want to know more about Nikole, visit her website here.
As always, thanks for reading! Let’s smash those 2021 financial goals!
Mel