Let’s Get Fiscal in the New Year - Guide to Greater Tampa Bay
Now Reading
Let’s Get Fiscal in the New Year

Let’s Get Fiscal in the New Year

financial success

They say a dollar saved is a dollar earned, but what about a dollar wisely invested? In the start of 2022, financial prudence is just as important as it has ever been. Financial concerns have certainly made themselves apparent in the last few years.

Thankfully, there is much that can be done to right the ship. Many people like to ring in the new year by including financial topics on their annual New Year’s resolution lists. Perhaps it is breaking a few pesky spending habits, chipping away at debt or taking a step back to create a whole new budget. Finding the resolve to complete those goals, while challenging, is absolutely worth it.

So, what can someone do to position themselves for financial success in 2022? Guide spoke to financial advisors who have served Greater Gainesville for decades. They shared some expertise for anyone who wants to make financial prosperity a priority for the new year.

Joe Lowry Sr. is a senior partner at Lowry Financial Advisors. He has been in the financial services industry since 1974 and works alongside his son, managing partner Joe Lowry Jr.

Bryan Reyes has been a partner at Pivot CPAs since 2004. A native of Starke, Reyes has also lived in Jacksonville before relocating and settling in Gainesville. While Reyes and Pivot CPAs work primarily with businesses and business owners, his financial advice is often applicable to individuals as well.

Bad habits to break

“Fear of investing and failure to invest” is a bad habit that many fall into, Lowry said. He recommends the pillow test: “You don’t invest in anything that you will worry about when your head hits the pillow at night.”

This fear of abstaining can take place in the workplace as well. Not taking advantage of employer-sponsored retirement plans is a missed opportunity to maximize pre-tax income.

“Don’t just put in the amount the employer will match. Put in as much as you can, as much as you’re comfortable with,” Lowry said.

For the savvy investor, Lowry advises against being overweighted in certain sectors. A failure to diversify across a variety of industries or investment types is a common pitfall among investors, he said.

For Reyes, one of the top things he advises against his putting off looking at financial information and setting a budget. There are unique challenges in 2022 that the average person should plan for.

“Inflation is here to stay,” Reyes said. “People are making more money but are spending more at the gas station and the grocery store.”

If buying that first home is a priority on next year’s to-do list, falling behind on financial management could set that goal back.

Lowry recommends a thorough look at the state of legal affairs. Not having a will or advance care directives can have potentially serious consequences in the face of uncertainty. In some instances, where life insurance may already have been purchased, a reappraisal may be worth exploring.

“Make sure that you have adequate insurance, and not too much,” Reyes said. “People often get insurance that’s too sophisticated for what they actually need.”

With the right amount of motivation, dedication and planning, bad habits can easily become good ones. Perhaps 2022 is the year to make a change.

Good habits to start

It has been said it takes 21 days to form a new habit. Day one, and the first step toward building that habit, may just be the most important.

“Start saving,” Lowry said. “Pay yourself first.”

For young people, Reyes recommends reviewing excess income.

“Max out your 401(k) or IRA where possible,” he said.

This good habit holds the benefit of reducing current tax liability. He also advises brushing up on current costs of living, evaluating and reevaluating to ensure success through living below one’s means.

See Also

Paying down debt, even incrementally, can go a long way in ensuring future financial stability. Credit card debt and student loan repayments are some of the most common forms of debt. Steps like making payments to avoid accruing interest can go a long way. Prioritizing debts can make the challenge feel less daunting.

For others, where this may not be possible, Lowry recommends seeking financial repair in the new year. Larger debts, for example, can be difficult to tackle alone. Lowry Financial Advisors offers this as a service. Lowry prefers the term “financial refocusing,” a shift in mindset and behavior to remember the basics.

“That’s where most people need help — the basics,” he said.

Three weeks might be all it takes.

Looking ahead

On finances in New Year’s resolutions, Lowry puts it simply: “Looking ahead is a good time to bring things into focus.”

Lowry quotes a line from one of his favorite financial advice books, “The Richest Man in Babylon” by George S. Clason: “A part of all I earn is mine to keep.”

He advises setting aside a certain, reasonable amount for savings, building a nest egg methodically.

While it cannot be known what the new year will bring, preparing for any outcome is always the best option. Working toward financial success is a difficult and personalized journey, but with some sound advice and a lot of drive in the pursuit of goals, the new year can be an excellent fresh start.

By Ryan Walsh

Copyright © 2020 by Guide to Greater Tampabay | Powered by TheRipal

Scroll To Top