Give Your Finances a New Year’s Check-Up

Lots of people make New Year’s resolutions, but what about financial check-ups? These often get overlooked, because people don’t think they have enough money or assets to warrant a check-up. The truth is everyone should take the time to see where they are with their money and figure out how they can improve their current situation.

If you have any kind of debt whatsoever, this is the perfect time to sit down with someone at no charge and figure out how you can pay off that debt faster. If you could pay off your five-year car loan in four years, you’d be saving money in interest, and you’d be ridding yourself of an entire year’s worth of monthly payments. The same goes for credit cards and lines of credit.

If you have no savings account, this is the perfect time to sit down with someone at no charge and see how you can start building one. You’d be amazed at how fast your savings can grow when you start with as little as $10 or $20 per paycheck, and there are so many ways to find that money. If you consolidate your debt into smaller monthly payments, you could put the difference in a savings account.

If you hope to retire some day, this is the perfect time to sit down with someone at no charge and figure out what you need to do to make that happen. Even if social security still exists when you’re ready to retire, it won’t be enough to live on. The earlier you start saving, the better off you’ll be. Sit down and talk to a professional now.

Earlier this year, Kara and John felt like they were drowning in debt. Desperate to get their heads above water, they contacted a financial planner referred to them by a friend. Eleven months later, they are getting ready to make their last credit card payment, and the only debt they will have is their mortgage.

“If you would have told me a year ago we’d be here today, I wouldn’t believe it. I still don’t,” said Kara. “Our credit card debt was almost $10,000, and our financial advisor found ways to help us pay it off. As my budget cleared up, I started putting more money toward my remaining debt. It’s been liberating, and it cost us nothing to seek professional advice.”

Add a financial check-up to your list of New Year’s resolutions this year. Ask a friend or ask someone at the credit union for a reputable financial advisor, and don’t be afraid to be completely honest about your finances. The only way to change a situation is to acknowledge there’s a problem and develop an action plan to make it better.  A financial advisor can help you do that.