Many of us take advantage of a new year to turn a new leaf. This can include everything from starting a new exercise program to making a commitment to cook more at home. It is also a great time to assess your current financial situation and take concrete steps to improve it.
Here are a variety of steps you can take at the start of the New Year to improve your financial life. Some may be more appropriate than others for your situation.
Review where you are
Start by taking a look at your current financial situation. Are you generating enough income to cover your expenses? Where could you reduce the cost of living? Are there any loans or debts that you can pay off faster? Are you saving enough for your key goals? Ask the tough questions to get a good idea of where you stand. Then consider one of the following steps that seems appropriate.
Dealing with debt
Make a plan to pay off your debt as quickly as possible. A priority should be to pay off high interest loans like credit card debt as quickly as possible. As long as the loans are manageable, you can continue to make monthly payments, but the more you pay back, the easier your monthly budget will be.
Build up your savings
Financial security is closely related to the amount of money you have. Commit to building an “emergency fund” equal to six months of your income to help meet unforeseen short-term needs. So commit to increasing your monthly retirement savings contributions if you can.
Solve to get a better job
Many employers struggle to find the right type of people for the job. This may be the best opportunity in a long time to find a job that offers better pay and that you may find more enjoyable.
Invest more efficiently
Do you think you could get the most out of your wallet? Take a closer look at what works and what doesn’t. Maybe it’s time to “cut your losses” on investments that turned out to be disappointing while putting some of that money to work in assets that offer greater potential.
Make 2022 different
If you think there is more you could do to strengthen your financial situation, make a commitment to start this process now. It may be beneficial to consult a financial advisor to help you find the path to a more prosperous future.
Thomas A. Callaway CRPC®, is a financial advisor at Ameriprise Financial Services, Inc. in Paris TX. He specializes in fee-based financial planning and asset management strategies and has practiced for 28 years. To contact him you can go to www.ameripriseadvisors.com/thomas.callaway or call (903) 785-7000, office located at 2219 Lamar Ave Paris TX 75460.
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