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Advisers Offer Financial New Year's Resolutions

Advisers Offer Financial New Year's Resolutions They Say Work 2
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For some Mississippians the start of the new year means making resolutions that include paying off debts and saving money. MPB's Desare Frazier has some tips from financial experts.

Mississippi financial advisor Cody Giles of Giles-McPhail says many people come to him trying to figure out how to pay off debt-- especially credit cards. He recommends paying more than the minimum due, while continuing to pay other debts. Giles says once one debt is paid that money should be used to pay other bills.

"Once that debt is paid off, we stack that payment onto the next payment and so forth which is called the "snowball effect" where we're just taking payments paying them down paying them off and taking that payment and stacking on to the next so the next debt is paid off at a quicker pace," said Giles.

Giles also recommends creating a budget and saving three to eight months of earnings for emergencies. He stresses the need to save money for retirement as well. Giles says every year increase 401K savings by one percent.

"Often times we'll look at people we'll tell them you know you can sacrifice a little now or you're gonna sacrifice a whole lot later. So if you can sacrifice a little now by cutting here or there within your budget to be saving for the long term, you're going to be better off," said Giles.

Giles say saving money could mean eating out less or doing without some things you want for a year or two. Financial Advisor Ryder Taft of New Perspectives says all financial goals require planning. He says its easier to save when the money is taken out of your pay check.

"For some folks that's just going to mean automating things. Having retirement savings come directly out of their paycheck, having all of their credit card bills come on auto draft so they don't even have the option not to pay the whole thing," said Taft.

Taft says have short and long term savings goals. See what works and adjust them as needed.