Episode 110: Financial Resolutions – Answering Your Questions

Today’s Prep:

Have you started working on your financial resolutions yet? What kind of questions have delayed you from reaching your goals? Today we’ll provide answers to help you stay on track financially this year.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Following our two-part podcast from a few weeks ago regarding financial New Year’s resolutions, David will answer some of the questions that listeners that wanted a bit more specific information about. Is anything standing in your way from reaching your 2021 financial goals?

After listening to the resolutions podcast, Carl in Lawrence had a few questions about credit cards. After a couple of years, he now has about $30,000 in credit card balances. He has a good job and regularly contributes to my 401(k) at work every 2 weeks. Can you help me with a plan?

David has five steps to helping you get debt-free. To start, stop using them. Should you keep making contributions while you pay off credit card debt? What if you have a company match? What order should you pay off the credit cards in and why does it matter? David breaks it down to give an estimate on how much you’re paying in interest with that kind of credit card debt. How can you realistically pay this off?

One client in Overland Park noticed his net worth didn’t grow last year. How concerning is this? It’s empowering to have that track record and to see that financial path. Knowing where you are has value and is worth recognition. But then, why didn’t it grow? Did your 401(k) balance decline? Did you sell at the wrong time? Make sure that you know how much risk you’re taking. Did you spend more on your living expenses? Or did you lose your job?

Finally, Rick in Liberty is 32 and single with a good paying job, but hasn’t started saving for retirement yet. Is he falling behind? Without access to a 401(k) through work, David recommends starting an IRA or Roth separately and to automate contributions. What are the action steps to make this happen?

How are you doing when it comes to your financial resolutions? Anything holding you back?

Listen to the entire episode or click on the timestamps below to skip to a particular question.

[1:31] – Mailbag: How do I make a plan to address $30k in credit card debt?

[2:49] What five steps will get you to where you want to be?

[12:24] – Mailbag: Should I be concerned about my retirement if my net worth didn’t grow last year?

[16:00] – Looking at the net worth statement gives you forward momentum.

[18:25] – Mailbag: Am I falling behind if I haven’t started saving for retirement at age 32?

[19:25] – What can you do if you don’t have a 401(k)?

Today’s Takeaway:

Getting rid of that credit card debt is job #1. Depending on your income and your expenses, I don’t know how long that will take you, but you’ve got to have a plan in place and you have to stick to that plan.”

– David Dickens

Additional Resources:

PODCAST: 2021 Financial New Year’s Resolutions, Part 1
PODCAST: 2021 Financial Resolutions, Part 2
PODCAST: SLY – Safety, Liquidity, and Yield

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More From David:

The host: David Dickens

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