Now is a great time to review your finances
Jan 15, 2025, 9:25 PM
(Canva)
(Canva)
SALT LAKE CITY — With tax season right around the corner, now is a great time to review your finances.
Kyle McBrien, CFP and senior financial planner at Betterment Investment Company, said there is no better time than early in the year to take an inventory of your accounts.
“Take note of your emergency funds, your retirement contributions, and other tax considerations,” said McBrien.
How to start
McBrien said you can start by looking at your income and your expenses.
“That’s something that I think is often overlooked but definitely super important. Make sure that you understand what is coming in and out of your accounts every day,” said McBrien. “And from there you can then build out a planning budget to say, ‘Okay, this is what I want to accomplish throughout the year. I want to make sure that I am allocating my money to my budget.'”
Budget items could include things like utility bills, rent, debt payments and groceries. McBrien also said it’s important to include building an emergency fund and saving for retirement.
McBrien suggested checking your spending and saving throughout the year to make sure you are on track. Your saving goals should be prioritized over your discretionary spending, like eating out or entertainment.
What about paying off debt?
You might have a lot of debt from the holidays or maybe are still paying off your student loans. Do you have to choose between paying your debts or building an emergency fund? Why not both, said McBrien.
McBrien said you want to be building your emergency fund so you don’t end up in a situation without it, especially if you have a lower interest rate on your card.
“You don’t want to get into a situation where you have no emergency fund and then you ultimately have to dip into debt again next time a big expense comes up.”
However, if you have a higher interest rate, he said you definitely should prioritize that while still putting a little aside for emergencies the best you can.
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