An Oklahoma financial advisor shares ways to stay on track with year money heading into the new year.
1. Make a plan for the future:
From saving for college to retirement, a written financial plan is crucial for developing the peace of mind to feel in control of your finances. Whatever your next phase of life or big purchase is, make a financial plan to get there.
2. Get your spending under control:
Inflation and the high cost of living over the past year have left many with no choice but to use credit cards, which can lead to debt. If your spending is out of control, now is the time to do something about it. Learn debt-reducing habits and consider how to start lowering your debt.
3. Improve savings habits:
If you’re living on a tight budget, it’s easy to forgo saving for an emergency fund and retirement, but it’s not a great strategy when a job loss or car repair comes out of nowhere and forces you into debt on your credit cards. Having an emergency savings can be a life raft. Also have a plan for unexpected money, such as a tax refund or bonus—don’t spend it before you get it.
4. Make adjustments for interest rates:
Interest rates have eased after several Fed cuts, lowering borrowing costs but also reducing yields on savings. If you want a safe place to grow your money, a certificate of deposit could be a good option.
5. Stay on top of scams:
You work hard for your money; the last thing you want to do is lose it to a scammer. Be proactive and stay on top of the latest scams such as phone SIM card swapping and AI-generated phishing attacks.
6. Be ready for the unexpected:
We know life is going to throw some curveballs, that’s why it’s important to have an emergency fund, insurance, a realistic view of your income and expenses and a plan to move forward.