Personal finance expert Jean Chatzky joins Yahoo Finance Live to provide tips for attaining financial resolutions in the new year.
– It is time for those New Year’s resolutions. And if getting your financial house in order is one of them, you’re in luck because personal finance expert Jean Chatzky is here now with ways you can make the new year a profitable one. We also want to mention she is the host of the new radio show and podcast “Everyday Wealth” with Soledad O’Brien. Always great to see you, Jean. Happy New Year.
JEAN CHATZKY: Happy New Year to you too. Nice to see you.
– So even before we make those New Year’s resolutions, you say it is important to do two things. Embrace your current reality and not compare yourself to other people. Sometimes easier said than done. Why are those two things so important?
JEAN CHATZKY: We have to know where we’re beginning in order to get where we want to go. And, really, that’s a matter of getting a handle on three touch points financially. Where is your money coming from? What’s coming in? What’s going out? And where it’s going. I know that a lot of people try to stay away from the numbers. But I find the numbers very freeing because they don’t lie. They’re honest. And once you’ve got a grip on it, then you can start to move forward.
And “you” is the operative word there. When it comes to your money, everybody has different goals. Everybody has different aims. And you should be using your personal resources as a tool to get what you want. If you can shut the rest of the world out, whether that means shutting out your colleagues and your friends or whether that means shutting out social media because it’s telling you to buy certain things or to wear certain things, you’re going to be much more successful in getting to what your ultimate goals actually are.
– And then apart from setting goals, you also say it’s a good idea moving down that list to automate your savings.
JEAN CHATZKY: Right. So when it comes to our goals– and the problem with many New Year’s resolutions is that they are way too big. If you’re doing dry January, for example, as so many people are, I think you’re better off thinking of it as four dry weeks or 31 dry …….