EYEWITNESS NEWS (WBRE/WYOU) — While losing weight and getting in shape is a popular New Year’s resolution, so is becoming financially fit.
Breaking spending habits can be tough and figuring out where to start is sometimes overwhelming.
“Being financially fit is definitely something I’m thinking about,” Bloomsburg resident Jimel Calliste said.
Many hope to start the new year off right by making smart decisions with their money.
“Well how do I focus on getting my credit a little bit better or how can I utilize my bank account?” Calliste asked.
“You just want to be a good steward for your money because it comes in slower than it goes out,” Wilkes-Barre resident Anthony Johnson said.
It all sounds good but how can you accomplish this resolution?
“Oftentimes people say ‘well I wanna get out of debt’ and it’s sorta like ‘oh I wanna lose weight’ and it usually doesn’t go any further than that,” Harold Shepley, CEO of Harold Shepley & Associates said.
Harold Shepley & Associates is a debt relief law firm. Shepley says in order to get you to better your finances in 2022, you need to have a plan.
“You do need to curb that spending,” Shepley said.
Many people have expenses that are too large or they forget about.
“A big problem I’ve had is when you sign up for a service and you forget about it and those monthly fees keep coming out,” Johnson said.
Another solid approach? Increase your income.
“Get a part-time job or do something on your own time,” Shepley said.
Once you’re making more money, you need to learn save it before you pay off any debt.
“So you might want to set up a separate bank account to have that money flow into. That way you know you have it,” Shepley said.
When it comes to tackling debt, Shepley recommends starting with your smallest debt first.
“Even if the interest rate’s a little lower, just because getting out of debt’s a lot like losing weight and you want to keep the momentum going,” Shepley said.
If your resolution is to start better planning for your future, Shepley says start putting aside 10 percent of your income in a separate account, such as a 401K or IRA.
“If you keep that, you will one day become a millionaire,” Shepley said.