Are you one of the millions of Americans with a financial resolution this year? From growing savings to paying down debt, taking smart steps now can help you make the most of the year.
Nora Yousif, a financial advisor at Powerhouse Group at RBC Wealth, explained building a strong financial foundation is easier than most people think.
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“I'm more a fan of money evolution -- small, incremental changes.”
Yousif said besides creating a budget, building up an emergency fund is one of the best ways to avoid racking up debt — especially if the unexpected happens. She said there’s no shame in shifting financial priorities – no matter how uncomfortable they might feel.
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“We can all white knuckle our way through anything. And so, if it's a finite period, that makes it easier,” said Yousif. “If it's getting a second job on the weekends or if it is really tightening the belt on spending just for six months, I urge you to do that.”
In a report by Bankrate, 16% of Americans said investing is one of their top financial goals this year. Yousif recommends opening a high-yield savings account to reach those short-term financial goals first.
“Some people are a little hesitant thinking, ‘gosh, the market's already on a great run. Have I missed the boat? Am I too late? When should I start investing?’ Yousif said. “To that I say, don't overthink it. Time in the market beats timing the markets to just start.”
Yousif also recommends people think about retirement. The earlier, the better.
“The younger you are, the more stock market exposure you want to have to better over time versus bonds and CDs,” said Yousif. “And as you get older, it's the opposite.”
Yousif adds improving finances is an ongoing journey that requires some sacrifice. But with time, it will all be worth it at the end.
“You can have it all. You can be financially responsible and enjoy more experiences now. Stretch your budget out further,” said Yousif.
