b'FOR YOUR PRACTICEHow does onefinancially prepare for a new year? Here are some actionable tips. Contributed by As we embark on a New Year, it seems like an excellent time to reflect on Shawn M. Johnson, ChFC , CLU, CLTCyour financial situation and to set goals for the future. Financial preparedness Vice President, Business Developmentis crucial for a successful and stress-free year ahead. In this article, we will Treloar & Heisel Wealth Management outline the essential steps to ensure your financial well-being in the coming year. sjohnson@treloaronline.com1: Get a handle on your cash flowUnderstanding your cash flow and setting clear and achievable financial goals is the cornerstone of financial preparedness. Start by assessing your current financial situation, including income, expenses, and debts. Allocate specific amounts for essential expenses and dont forget to include savings and an Preparing financiallyemergency fund in your budget. for a New Year is2. Build an emergency funda proactive stepBuilding and maintaining an emergency fund is a financial safety net. Aim to toward achieving yourhave at least three to six months worth of living expenses saved in this fund. It will protect you in the event of unforeseeable expenses and will save you from financial aspirationshaving to resort to high-interest loans or credit cards. and maintaining3. Pay down high-interest debtpeace of mind. If you have outstanding debts, create a plan to pay them down. Prioritize high-interest debts like credit cards and personal loans. Evaluate how to best allocate your surplus cash flow to balance the competing demands of debt repayment and long-term wealth building.20'