One of the more familiar resolutions for the New Year is to get our financial houses in order. Kirk Matthews talked with an expert about the first steps toward accomplishing that goal.
There's an old song that goes – money makes the world go round.
But the lack of it can bring your world to a screeching halt. What's the first thing we should do to get a handle on our financial situation?
"First thing a person should do is really an idea of all the debt that they owe. It's hard to understand just how to chip away at your debt unless they have that big picture view and that should include all your credit cards, all your - such things as your personal loans, your car loan, your mortgage payment,” said Bob Yee of Central Pacific Bank.
Once you get that big picture view, understanding where the money comes from and where it goes - it's important to set up a budget and stick to it. There's lots of help available to do that.
"More and more on line banking has on line tools which can help you budget for those types of things. Also setting up e-alerts with your financial institutions and your credit card company can help you manage your budget. Such things as on line apps like moneybook and mint can help you as well,” said Yee.
As you might imagine, this New Year’s resolution - like others - will require some discipline.
"Once you've set up that budget, sticking to it is very important. Now, one of the things that you can do to help you save and to help you chip away at that debt, is to figure out how you can save - - one of those things is creating a shopping list before you go to the grocery store,” said Yee.
One of our biggest expenses is credit card interest - talk to your financial advisor about that.
"Seeing if you can qualify for a lower rate personal loan or home equity credit line which can have a lower monthly payment and free up money and that really is the key to getting your finances in order,” said Yee.
If you have a question for our financial experts, email dollarsandsense.com@KHON2.com.
