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LANSING, Mich. (WILX) – After a season of shopping, there are ways for people to get their finances back on track heading into the new year.
Many budgets get pushed to the side during the holidays, and while it’s fun to give, the owner of Full Circle Financial Planning, Jose Yanez, said many people are now feeling the financial fallout.
Yanez said many people tend to spend money they don’t have. Racking up debt on credit cards, but it’s important to note that paying off those bills takes time.
“Be strategic about it, maybe start with the lowest balance first and then pay that off and use the snowball effect,” said Yanez. He added, “It’s more of a psychological thing where we’re eliminating credit cards one at a time.”
Cutting unnecessary expenses can also help save money.
“If there are things that you feel like I’m not utilizing this, but I’m paying 50 dollars a month for it, get rid of it, eliminate it, put that 50 dollars into a savings account for the holidays, or for your future self such as a Roth IRA or retirement plan,” said Yanez.
For those confused about where to start when it comes to managing finances, speaking to a financial expert can help.
“Most financial planning firms out there will offer a free initial consultation where you can come in and kind of talk about what your situation is, and they’ll put you on the right path,” said Yanez.
According to Wallethub, about 25% of Americans are still paying off holiday debt from 2022.
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