What to Expect for 2021

I’ll admit, the title is a bit misleading…I don’t know what will happen in 2021. In fact, if this year has offered anything it is that it has uniquely reinforced the mantra “expect the unexpected. Even still, that should be worth something.

What I lack in clairvoyance I make up for in pragmatism. I don’t like unrealistic or whimsical predictions and I am immediately skeptical of viewpoints that have not been fully developed or explored from all angles. I promise not to contradict these personal pet peeves.

2020 has brought with it a global pandemic, an historic economic shutdown followed by an equally historic recovery, unprecedented central bank action, a booming housing market, social unrest, and a divisive election…and this is just the short list.

2021, when we reach the end of it, will have looked something like the following…

Government continued to implement measures to combat the coronavirus and a vaccine was widely distributed; the economy, and more specifically businesses, continued to adapt to the new normal and found unique ways to operate efficiently; new business creation continued, ultimately to satisfy new needs and wants in the marketplace; and life for you and me looked a like it always has…a fairly consistent set of routines and a new set of challenges – both work and personal in nature.

Groundbreaking, right? The only big, fundamental transformation that took place in 2020 was a change in the way we do what we already did. Let me say that again a different way…we still went to work, took care of our families, and went about our lives. Life in 2020 may have looked and felt different – and it was different — but it was more a change in venue (more remote work) and a change in disposition (wearing masks, social distancing).

Now, I don’t want to glaze over the fact that millions of people lost their jobs or that many, many people have become ill or died due to complications surrounding COVID-19. Setbacks and illnesses are not unique to 2020. And that’s sort of the point. Some things are out of our control. What we can do is focus on things that are firmly within our control.

Here’s what I suggest…

Take stock of where you and your family are on a personal and professional level.

  • Am I gainfully employed, or do I need to get creative to keep food on the table?
  • Is my family taken care of, and am I taking the proper precautions to ensure their safety?

If you feel comfortable with your situation, progress to the next level of self-introspection and evaluation.

  • Have I set clear goals for this year? Have I implemented a plan of action for achieving those goals?

Some questions you might ask yourself when developing goals:

  • Am I doing enough to ensure the financial security for my family?
  • Am I doing enough to give back to the community? This could be financially, with your time etc.
  • Am I pursuing a constant state of growth, which might involve reading, working out, taking classes, listening, asking questions, working harder, building a business and so on?

To finish where we began, what you can expect in 2021 is a combination of things both inside and outside of your control. Focus on what you can control, and the likelihood that you have a successful 2021 goes up immeasurably.  

2020 Preview: Your Finances

How did you do in 2019? Did you achieve any or all of your goals?

December is a great time to evaluate accomplishments and shortcomings for the year, as well as any general progress you may have made pursuing something worthwhile. It is a time of reflection for all that you experienced, and to plan ahead for what’s to come. If you don’t keep a journal to track your progress, now’s the time to start!

When looking ahead to the next year, it’s easy to get wrapped up in the chatter surrounding a possible recession. Will there be one? And if so, how big will it be? How do I develop achievable goals with so much uncertainty?

It’s simple. Focus on what you can control.

I recommend one overarching goal that allows you to develop a few, smaller goals.

Primary Goal

When you set a certain net worth that you want to achieve for the year (or perhaps over the next 3-5 years), you are effectively creating sub-goals at the same time. If you are having trouble coming up with a primary goal, this is a great one to establish. It will likely look a little something like this…

Primary Goal: Reach a six-figure net worth

Which means you will need to…

Reduce Debt – If you carry any debt (credit cards, student loans etc.), you will want to reduce it.

Increase Income – While saving and investing is critical to increasing your net worth, you can only reduce spending by so much. Increasing your income will allow you to stash a lot more cash. Perhaps to help you acquire a higher income, you need to either change jobs or pick up a side hustle.

Find a Mentor – Having a mentor who has achieved what you seek to achieve can be an invaluable addition to your plan of action. A mentor may be able to show you new ways to increase income, reduce debt, or simply raise your personal and professional profile.

Invest in Yourself – In addition to finding a mentor, make sure you are reading the right books, attending the applicable seminars, and taking courses.

Once you’ve established your primary goal and sub-goals, you’ll want to create a system for tracking progress along the way. Keep tabs on all of your assets and liabilities on a monthly or quarterly basis, as well as a method for holding yourself accountable to certain milestones…and you are on your way!