by Christy Bieber | Updated July 25, 2021 - First published on Jan. 12, 2021
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Will your spending patterns also change? You may need to make a shift in your credit card if they do.
As the new year gets underway, it's time to consider the financial changes that 2021 will bring. For me, I know my spending will increase in a few key areas this year.
There are three things in particular I'm hoping to spend a lot more on. Here's what they are.
The market was volatile last year, but ultimately most of my investments performed pretty well and I ended up with a higher portfolio balance than I started with. Still, I plan to spend even more on investing next year than I did this year.
There's a simple reason for that: I try to inch up the amount I'm putting into the stock market each year. The more money I invest, the faster I can build the wealth that provides the type of financial security I want to achieve. This is an important goal for me. As such, I've increased the amount I've invested every year for the past few years, and I'm going to do it again in 2021.
I also devoted more money to building my emergency fund during the start of the COVID-19 pandemic, which is money I'd probably have otherwise put into the market. Now I'm set to have a generous amount of money saved for unexpected expenses. Which means I can redirect some of the dollars I was putting into my emergency fund to hitting higher investing goals.
Like most people, I didn't get to take very many trips in 2020 due to the ongoing pandemic. There's no guarantee the conditions that prevented travel will end this year, but I'm hopeful things will improve now that the vaccine has started rolling out.
If it becomes safe to travel, I definitely plan to do so. I want to make up for lost time and take some of the trips I had to put off last year.
The pandemic also affected the safety of hiring childcare and housekeeping help -- both of which I desperately need since I work full time and have an active small child.
If and when it's safe to bring back the people I had cleaning my house and helping me take care of my son, I'll do so ASAP. And that means I'm going to increase what I spend on service providers.
Hopefully, 2021 will look very different for most people. Your spending patterns may change in different ways, but chances are you won't use your money in the same way this year as you did last year.
If that's the case, it's important to make adjustments to your budget to account for the shift. It's also a good idea to consider whether the credit card you use for your everyday spending still makes sense. Last year, my primary credit card provided extra rewards for grocery purchases but I'm hopeful my travel card will be back at the top of my wallet this year.
Make a plan for how your spending will change and choose the right credit card. That way you can be prepared for what the new year will bring. You can also make sure you're maximizing your rewards on the spending you'll do the most.
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