TEMPLE, Texas — Did you set financial goals for 2024? And if you did, are you actually adhering to them?
Well, it's now February, but if you haven't set goals it's not too late! So, let's review those healthy habits in this Money Talks!
"Start by getting out of debt," said financial planner Neil Vannoy. "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."
We do know that emergencies happen in life. That's why this year Vannoy suggests making it a priority to have an "emergency" fund!
"Make sure you have a cash reserve," Vannoy told 6 News. "It's a good idea to have 3 to 6 months 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."
Once you're out of debt, Vannoy says to take the steps necessary to make money that you will borrow in the future cheaper for yourself.
"Work on building or improving your credit," Vannoy said. "Credit scores have a huge impact on our lives. Having a better score can lead to lower interest rates on loans, better rates on certain types of insurance and make it easier to rent or buy a home."
Once you're in good financial shape, start investing or boost your investments to build wealth.
"Start investing. The best place to start investing is with your company's retirement plan since most plans offer a match," Vannoy said. "You could also open a regular, taxable investment account to save for short or intermediate-term financial goals or a Roth or traditional IRA to invest for retirement. When investing in any type of account, look for low-cost, no-load mutual funds and ETFs to keep more of your money working for you."
According to Axios, 63% of Americans rate their current financial situation as being "good," including 19% who say it's "very good."
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