January 18, 2025 - 05:37
Recent findings reveal that a significant portion of Americans, approximately 36%, have accumulated holiday debt this season, with an average debt of nearly $1,200. To navigate this financial challenge and pave the way for success in 2025, financial expert Ross Mac emphasizes five essential steps.
First, creating a comprehensive budget is crucial. This allows individuals to monitor their income and expenses effectively. Understanding annual expenses is a foundational aspect of this process. The second step involves saving at least $1,000 as a safety net. Following this, it is vital to prioritize paying off high-interest debt to reduce financial strain.
Building an emergency fund is the next step, providing a cushion for unexpected expenses. Finally, Mac highlights the importance of investing, noting that saving alone is insufficient for wealth accumulation. By starting to invest, individuals can work towards outpacing inflation and securing their financial future. Regular check-ins on financial progress can also help maintain focus and accountability.
