TYLER, Texas (KETK) – With 2022 being one of the most expensive years and holiday seasons yet, many east Texans may have fallen off track when it comes to their finances.
A lot of people may have resorted to swiping their credit cards a lot during the year, especially this month for Christmas gifts, and are now left with holiday debt.
East Texas financial experts said they are here to help.
“People are very scared and people are feeling what’s going on in the economy,” said Financial Expert James Holloway with the Holloway Partnership.
Holloway said three common concerns he hears from clients involve debt, retirement and budgets.
When it comes to debt, the best advice is to pay off the smallest debt first and focus on one piece of debt at a time.
“It also takes the interest that people were paying out of the equation. Because you’re paying it off way quicker than you would normally be paying it off if you’re just chipping away at every piece with a little extra,” added Holloway.
Keep in mind, you can make a big difference in your spending by just focusing on your needs in 2023 instead of wants.
“Most people can find a respectable chunk of assets that they shouldn’t have spent money on, they didn’t realize they spent that money on and then going forward for the next year, focus on not duplicating that behavior,” explained Holloway.
Holloway said a big mistake people make is not planning for retirement soon enough.
Ask yourself the question: “what does it cost to be you?”
“That answer allows you to start putting together what the financial world needs to look like to take care of you throughout retirement,” he added.
And if you’re putting your money into stocks remember:
“If you can’t afford to lose it, it doesn’t need to be a risk,” said Holloway.
When it comes to taxes, there are changes coming to 2023 that may affect taxpayers.
“You’re looking at the child tax credit which in 2021 was up to $3600 per dependent. It’s been reduced back down to 2019 levels where it’s $2,000 per dependent.”Ashley Lewis // Co-President, Ashroq financial
Lastly, save everything.
“Keeping a paper trail makes our job easier but also allows us to kind of see what you truly are eligible for so we can maximize your refund,” Lewis added.
Financial advisors say they usually see more people seeking help this time of the year and have seen a rise in clients this year because of inflation and the current state of our economy.