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Money Talks: New Years Financial Resolutions

These are the things that you'll want to do at the beginning of the year to make sure your finances are healthy.

TEMPLE, Texas — Happy New Year! Many people have made resolutions, maybe about their health, their weight, or their finances. On this Money Talks we talk to a financial advisor about money resolutions we should all be making every year. 

Any financial advisor will tell you that it's always a great idea to get out of debt. Our ‘resident advisor’ Neil Vannoy is no different. Vannoy told 6 News, "Carrying debt means you could end up paying a lot of interest and also takes away money that you could use for your financial goals. If you have debt, then check out www.powerpay.org, which is a free resource to help you develop a budget and debt repayment plan."

Once you are out of debt, it's very important that you build your emergency fund, even if starting small. Neil says, "It's a good idea to have 6 month or more of living expenses in your emergency fund, but don't worry if you can only put away a little bit of money to start. Even saving $10 to $20 per week adds up over time. You can use www.bankrate.com to find a high-yield savings account to hold your cash."

Neil Vannoy also has some general recommendations for us as well, telling 6 News, "We discussed ways to save money and spend less leading up to the holiday season, but don't stop following these tips after the holidays are over. Keep doing things like sticking to your shopping list, implementing a cooling off period, and using cash instead of credit cards throughout 2023."

And Neil also says you can build wealth by making good smart investments. He says, "The best place to start investing is with your company's retirement plan, especially if there's a match, but you could also use a Roth or traditional IRA. When opening an IRA, look for low-cost, no-load mutual funds and consider using a target date or asset allocation mutual fund that will give you instant diversification with a single investment."

And remember, the investing part of wealth building can be overwhelming or difficult, so it's a great idea to seek out some professional advice! 

Neil told 6 News, "If you already have investments, you might benefit from sitting down with a professional to discuss things like your asset allocation, tax management, or long-term planning. If you'll be interviewing potential advisors, viewers can go to www.napfa.org and search for the phrase 'questions to ask a financial advisor' for a great list of questions."

Over half (53%) of people who made new year resolutions this year said they plan to prioritize finances, according to a survey released today by the data company numerator. That's up by six percentage points over last year.

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