Financial experts say to make these money moves before 2022
WASHINGTON, DC – This time of year it can be easy to get carried away by the magic of the season.
âEveryone’s out there, you know, shopping and exploring,â said Dana Gagnon, owner of Hart and Honey, a small interior design company in Southern California.
However, experts say that for those who aren’t careful about their vacation spending, the cold reality of 2022 could be looming.
âIt’s easy to swipe that card, especially while on vacation,â said Rod Griffin, senior director of consumer education and advocacy for the credit reporting company. Experiential.
Experian recently conducted a nationwide survey, measuring where people were with their finances almost two years after the start of the COVID pandemic.
âPeople have said that COVID still has an effect on their finances in some cases, but less than last year,â Griffin said.
Last year, half of those polled said they were stressed about their finances while on vacation. This year that number has fallen to 30%. This time around, that stress revolves more around supply issues.
âGetting the gifts for the kids and having them physically there may be more stressful this year than being able to pay for them, which is an unusual circumstance,â Griffin said.
Still, the survey found that overall, 58% of people worry about how much they spend on vacation. The most affected group: 45% of 18-24 year olds, also called Gen Z.
âIt makes sense. In a way, these are usually the less established, the lowest incomes in general,â Griffin said.
He said there are steps members of every generation can take right now to make sure they face the New Year with their personal best finances.
âThey ask themselves ‘How can I operate in this kind of era of uncertainty in our finances and see things like inflation?’ seeing things like higher costs and lower supply creates uncertainty in how you manage your finances, âGriffin said.
Step One: Work on increasing savings and see where you can cut unnecessary costs.
Suggestion two: create a budget, which is an essential tool that can help keep you on track financially.
Finally, Griffin said it’s important to check your credit report and pay off credit card debt.
âCredit card debt tends to be the most expensive debt you have, not the biggest – it’s usually people’s homes – but the most expensive debt you have, because that interest adds up and you can end up with growing credit card balances without actually buying anything. if not, if you’re not careful, âhe said. “So paying off debt – credit card debt – creates more freedom in finances.”
Some buyers have said they take this advice a step further by not creating credit card debt in the first place.
âI keep my money in my pocket and just spend time with my family,â said Cheryl Mosely, who shopped near Detroit.
It’s just a decision made now that can bring people together, while keeping hard-earned money closer to home.