TOWSON, Md. — We are less than a week away from the New Year.
As people put together their new year resolutions, one thing on the top of many people’s minds is being financially responsible.
That’s the case for Baltimore native Joyce McNair-Gilbert.
She tells WMAR-2 News, she made some bad financial choices over the last two years.
“2024, 2023, I spent needlessly. I spent on things I couldn’t even use after spending it on, and half of the things, I forgot what I spent it on,” said Joyce McNair-Gilbert.
So, as we enter into the New Year, she plans to spend less and save more.
“My financial goal, whether I keep it or not, is to save $1,000 a month. I feel like if I can save $1,000 at the end of 2025, I’ll have $12,000 I can put in a savings,” said Joyce McNair-Gilbert.
According to GOBanking Rates, consumers are expected to spend $2,000 this holiday season.
JP. Krahel is an Accounting Professor at Loyola University Maryland.
He says it’s important for people to tackle their credit card debt first.
“If you rack up a 2,000 dollar credit card bill and a 25 percent interest, it’s going to cost you about 280 extra dollars. If you pay it off regularly over the space of the year. So, that adds up,” said Krahel.
Krahel says it’s important to pay off your debt and put money aside for an emergency fund first before you put any money into another savings account.
“I think a lot of people think investing is exciting. It can be an enjoyable thing sure, but stability is a pretty cool thing too. And I think people prioritize saving above debt repayment,” said Krahel.
When it comes to tackling debt, you’re better off doing it sooner, rather than later.
“If you are able to wrangle all of your bills, all of your debts, and say, here is where I stand, and then make a well-informed plan, I think that helps people avoid a lot of the mistakes they make,” said Krahel.
