It’s the start of a new year and many people have resolved to improve their finances.
Saundra Newton, a local financial advisor with Edward Jones, shared tips on growing financial health that can be applied this January or at any time of year. She said saving is easier for people when they have big goals in mind, whether it’s retirement, education, or a large purchase.
Once a goal has been set, Newton said the next decision to make is where to start saving. Savings accounts through a bank or credit union can help small, regular contributions gain interest. However, Newton said if people have a longer-term goal and don’t need the money immediately, a certificate of deposit, or CD, can offer higher interest rates.
“You can get a three-month CD, a six-month CD, a longer-term CD,” she said, “But, once again, it really gets back to what that ultimate goal is, and it’s important to know what that goal is before you do anything with your money.”
Newton said small amounts add up, meaning the best thing people can do is save – and start early. Though she spends much of her day working with senior investors, Newton said young people have time on their side.
“The biggest thing for younger people is to start young,” said Newton, “It doesn’t matter if you’re saving 10 dollars, it doesn’t matter if you’re saving 25 dollars or 1000 dollars. Start young. Put it in and keep it invested.”
Newton said setting aside a hundred dollars each month can yield tens of thousands of dollars in compound interest over decades – and, in some accounts with a high annual percentage rate, hundreds of thousands of dollars over a lifetime.
According to a recent survey from Forbes Advisor and OnePoll, financial health is the second most popular category for 2024’s new year’s resolutions, with over a third of respondents listing it as their top priority.