PHILADELPHIA (KYW Newsradio) — As 2021 ends, many people make New Year's resolutions. One area expert hopes everyone resolves to enjoy more financial success in 2022.
Families have knocked financially every which way, from prices at the pump to every grocery item they put in their cart. Morgan Stanley executive director and financial advisor Bob Manning said it's hard for many to think of financial growth at a time when it's a struggle just to survive with inflation not seen since the '80s.
"Rapidly increasing prices, let's face it, is a tax on everyone. What you are finding is that, for example, if you take $100 out of an ATM and you fill your car up with $60 [worth of gasoline] this year versus $40 last year, you're not going to the mall, you're not going out to lunch, you're going home," said Manning.
"The last time we had this kind of inflation at the pump is when crude got up to $150 a barrel back in '07 and early '08 and it was very difficult but it was very short term. This is lasting much longer and it is in conjunction with a pandemic."
So how can families deal with this inflation? Manning said to run towards the problem, not away from it. The end of the year is the perfect time to make financial resolutions.
"Whenever you get paid, pay yourself first," he urged. "Take that money, put it in a diversified investment. Do it every time you get paid. Leave it alone. Throw it over the fence."
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Manning also advised families to sit down and determine their monthly cash flow.
"Now you identify fixed expenses. Here's a couple of ideas. Bid your home and car insurances, cable bills and any services including, for example, electricity. There may be some findings there," he suggested.
"Make decisions about, for example, if you work in the city driving versus taking public transportation."
Another suggestion is to cut down how often you eat out, and have movie nights at home to cut down on entertainment expenses.
He said it's important to include the entire family in these choices. "Kids have some very good ideas, especially when they know they are part of the solution," said Manning.
The most important thing, he said, is to try to relax. We can only do our best.
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