ROANOKE, Va. – Many people like to set goals to be financially healthy to begin a new year but don’t always follow through with them.
2022 was a hard year financially for many families across Southwest Virginia, as well as across the nation. Inflation is hitting record marks and people are still trying to recover from the COVID-19 pandemic.
Daniel Colston, CEO of Upward Financial Planning, said no matter the financial situation, people should save as much as they can.
“They really just need to start having that discipline of setting money aside…no matter how much you make. You can always set aside 10% for your future,” Colston said.
Colston has worked as a financial advisor for years. He mostly specializes in people looking to retire or people who own businesses.
He believes there are three things an everyday person can do to be set up for financial success in 2023:
- Budget- Know what your financial situation is and make sure to not spend more money than you make.
- Look at tax options- Many people don’t know the areas where they can save money on taxes, ex. marriage, kids, and owning a business.
- Invest- Take advantage of your company’s 401k savings plans or look at getting into a Roth IRA account.
Through the year, Colston found many people don’t take advantage of investing in a 401k account or retirement plan.
“That money is going to continue to grow and compound over time … so in retirement, you can have a nice nest egg, savings account for retirement and not just rely on social security to support your entire retirement,” Colston said.
While saving money is important for the new year, so is paying off your debt. Whether it’s credit cards, buying a home or car, student loans, or something else, we’re told people should make sure to pay off their debt so it doesn’t keep adding up.
“Pay those higher interest, lower balance debts, and then really get some momentum building and attack your debt like it’s a cancer. It really is, it’s like a financial cancer,” Colston said.
There’s no predicting what can happen in 2023 that will affect your finances. However, experts said the year should be better financially than 2022.
Having a plan before the clock hits midnight will help start the new year off right.