This year, more people are expected to make financial resolutions due to inflation. A study from Fidelity Investments found that more than one third of Americans say they are now in a worse financial situation compared to 2021.
In the past year, Waco financial advisor Shawna Bradfute has noticed her clients are being tighter with their wallets.
“A lot of my clients are having the same discussions and just being more aware with their spending,” Bradfute, who works for financial services firm Edward Jones, said.
Bradfute expects that trend to continue into 2023 and advises folks to remember to save, even with the current climate.
“Don’t let the current environment with inflation derail your savings and investment strategy,” she said.
The Fidelity Investments study found that the top three financial resolutions are to save more, spend less and pay down debt. Experts said the first step is to identify your financial goal.
“Is it a short term goal such as saving for a vacation or a home vacation?” Bradfute said. “Or is it a long term goal like saving for retirement?”
After that, financial advisor Melinda Bulls with the Bulls Financial Group recommends writing down a monthly budget.
“I always say if it’s not on paper, it’s not on purpose,” Bulls said. “If they are looking to save money they have to know where they are at.”
Instead of putting a little into each account to pay off debts, experts say to start by paying off the smallest account first.
“A lot of folks will never gain momentum if they don’t get something paid off,” Bulls said. “If we don’t seek progress what do we do? We actually give up.”
Little things like cutting back on morning coffee runs and eating out less can help you save a lot of money and ultimately achieve your goals.
“It’s tough, I mean peer pressure, image and lifestyle,” Bulls said. “You have to kind of break out of that mindset, don’t follow the herd.”
