Financial ‘nice’ and ‘naughty’ lists for financial stability in the new year

AS THE NEW YEAR APPROACHES, MANY PEOPLE ARE EVALUATING THEIR FINANCES. WHAT YOU SHOULD BE ANYWAY. AND WE’RE TAKING A LOOK AT SOME OF THE HABITS THAT YOU MAY WANT TO LEAVE BEHIND IN 2025. AND JOINING US THIS MORNING ABOUT WHAT HAPPENED TO KEEP AND WHAT HAPPENED TO LOSE IN THE NEW YEAR IS VICE PRESIDENT AND FINANCIAL ADVISOR AT CAPTRUST. KATHERINE MCCALL, THANK YOU SO MUCH FOR JOINING US. HAPPY CHRISTMAS EVE, EVE. GOOD FRIENDS REFERENCE. ALL RIGHT. SO LET’S START WITH THE NAUGHTY LIST, SHALL WE? SO WHAT ARE A COUPLE HABITS THAT WE SHOULD ALL LEAVE BEHIND IN 2025 IN 20 GOING INTO 2026. WE’RE GOING TO LEAVE BEHIND ALL FAILURES TO PLAN. SO PLANNING FOR EXPENSES AND STUFF LIKE THAT. WE’RE GOING TO LEAVE BEHIND UNNECESSARY DEBTS AND WE’RE GOING TO RUN, RUN FAR FROM ANY ANNUITIES. OH, OKAY. ALL RIGHT. SO THAT OBVIOUSLY TAKES A LOT OF PLANNING DOESN’T IT? EXACTLY. SO ON A PLANNING FRONT, IF WE HAVE UPCOMING EXPENSES THIS YEAR, IF WE THINK WE MIGHT RETIRE THIS YEAR, IT’S TIME TO START PLANNING. IT’S TIME TO START BUDGETING, FIGURING OUT WHAT WE CAN AFFORD. YOUR FAVORITE WORD? BUDGETING. I KNOW I BRING IT HERE EVERY. EVERY TIME. IF YOU CAN’T PLAN, THEN YOU’RE NOT GOING TO YOU’RE NOT GOING TO BE SUCCESSFUL IN THOSE NEXT STEPS. YEAH FOR SURE. SO WHAT DO YOU DEFINE BECAUSE A LOT OF FOLKS ARE GOING TO LOOK AND SAY LIKE, OKAY, I OWE MY DEBT IS ENORMOUS. HOPEFULLY IT’S NOT. BUT BUT WHAT DO YOU QUALIFY AS BEING TOO MUCH DEBT. YES. SO IDEAL CIRCUMSTANCE. WE ONLY HAVE A MORTGAGE. THAT’S IDEAL CIRCUMSTANCE. IF NECESSARY I WOULD SAY LET’S MAKE SURE THAT WE ARE TAKING ON REALISTIC DEBT IN TERMS OF DO YOU NEED A FANCY CAR WITH A $500 CAR PAYMENT? OR CAN WE SCALE THAT BACK? THE THING I WOULD AVOID AT ALL COSTS IS THE CAR PAYMENT, IF YOU CAN, BECAUSE THAT’S MONEY THAT YOU COULD JUST BE SAVING OR SPENDING ON SOMETHING MORE FUN. IT YOU KNOW, THE PERSONAL LOANS, THINGS LIKE THAT. I WOULD HIGHLY TRY TO AVOID. AND OBVIOUSLY CREDIT CARDS ARE GOING TO BE OUR WORST BECAUSE THEY HAVE MAJOR INTEREST. WALL STREET JOURNAL CAME OUT TODAY AND AND TALKED ABOUT 100 MONTH CAR LOAN. WELL, THAT’S A LONG TIME TO BE PAYING OFF A CAR. YEAH, A LOT OF OPPORTUNITY TO DRIVE ON THE 50 AND ACCIDENTALLY HIT SOMETHING. THAT’S RIGHT. ABSOLUTELY. WHAT ABOUT ANNUITIES? RUN, RUN FAR AWAY. THAT IS A GREAT WAY FOR SOMEBODY ELSE TO MAKE MONEY OFF OF YOU. OKAY, PERFECT. WHAT ABOUT SOME NICE FINANCIAL BEHAVIORS AND HABITS FOR US TO BRING INTO THE NEW YEAR? THAT’S RIGHT. YOU HEAR ME ALL THE TIME. TALK ABOUT THE EMERGENCY FUND. IF WE DON’T HAVE THAT SIX MONTHS IN A HIGH YIELD SAVINGS ACCOUNT OR A MONEY MARKET FUND, THAT’S REALLY IMPORTANT. THIS IS A GREAT TIME OF YEAR FOR AUTO ESCALATION. IF YOU GOT A RAISE AT YEAR END, OR MAYBE YOU GOT A LITTLE EXTRA INCOME, THIS IS A GREAT TIME. GO IN AND SET UP AUTO ESCALATION SO THAT 1% PER YEAR GOES INTO YOUR RETIREMENT ACCOUNT HIGHER THAN THE YEAR BEFORE. SO IF YOU WERE DOING FIVE IT DOES SIX. AND ON AND ON. IT’S A GREAT WAY TO BUILD UP THAT PLAN. AND YOU WON’T FEEL IT IF IT’S JUST 1%. IT’S LIKE, OH, NOT TOO BAD ON OUR PAYCHECK. KIND OF LIVING WITHIN YOUR MEANS, SO TO SPEAK. OTHER IMPORTANT ONES. THIS IS A GREAT TIME OF YEAR TO CHECK YOUR BENEFICIARIES. MAKE SURE THAT WE HAVE THE RIGHT PEOPLE, THE RIGHT LOVED ONES, OR THE RIGHT CHARITIES IN LINE TO RECEIVE YOUR MONEY. IF YOU’RE NO LONGER ON THIS EARTH. AND THEN, LAST BUT NOT LEAST, CLEANING OUT YOUR CLOSET DOESN’T HAVE TO HAPPEN IN THE SPRING. LOOK THROUGH YOUR ACCOUNTS AND SEE. DO WE HAVE TOO MANY THINGS? DO WE HAVE TOO MANY THINGS IN DIFFERENT PLACES? IS IT TIME TO MAYBE CLEAN THAT UP AND CONSOLIDATE ACCOUNTS? ANSWER IS PROBABLY YES. ALL RIGHT, CATHERINE, THANK YOU SO MUCH FOR J