How to become financially secure in the new year

WILMINGTON, NC (WWAY) — The new year is here, which means it’s time for everyone to start working on their resolutions.

As people start to take down all of their holiday decorations and clear space for their new gifts, some of them begin to look for ways to improve their mental or physical health.

But something everyone should focus on is the health of their bank account.

“The biggest mistake that people make is just not putting enough focus and energy into saving for the long term,” Chad Slate, associate wealth advisor with Pathfinder Wealth Consulting, said.

He said the holidays cause people to be in a precarious financial situation once the new year rolls around.

“People put financial planning kind of on the back burner. And they say, ‘Oh, I’m just not going to deal with that now.’ A lot of that comes from overspending at Christmas, celebrating during the holidays.”

According to the National Retail Federation, the average American spends more than $900 on Christmas.

For some people, like Tyler Swointek, being financially secure means being able to both pay for a new house and basic needs.

“We’re doing our best to like spend less, bargain shop and, you know, got a house to pay for,” Swointek said. “I’m much more aware of my vehicles and like vehicle maintenance and making sure things are taken care of like on the spot so something doesn’t get worse.”

Slate said it’s also important to focus on getting out from under any credit debt as soon as possible.

He added that an easy way to save money is to take advantage of any employer-provided 401k with an employer matching mechanism.