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Locals offer tips on maintaining New Year’s resolutions

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Before someone gets a gym membership and talks to a trainer, though, they should first make sure they can afford it. That very well could help them with another popular New Year’s resolution – saving money and reducing debt.

Katie Johnson, vice president and trust officer of National Bank & Trust Company at 230 W. State St., Sycamore, has a five-step plan people can use to make better financial decisions. It includes developing and sticking with a budget, setting financial goals or re-prioritizing current ones, making reducing debt a priority and checking credit reports.

People are entitled to one free credit report per year. Johnson recommends going to www.annualcreditreport.com so people can review the report and check for inaccuracies.

“My best recommendation is to increase your income and decrease expenses,” Johnson said. “Try to eliminate luxury or extravagances that really aren’t a necessity.”

The biggest mistake Johnson sees people make with their money is not diversifying it. People have all their stock in one particular company, like the company for which they work.  

“While that loyalty is good and everything, it isn’t a good idea to put all your eggs into one basket,” Johnson said.

How to best diversify depends on someone’s risk profile, and Johnson said NB&T works with people to assess those needs and goals.

Whether it’s losing weight, eating healthier or being smarter with money, there are local resources for people to succeed. Once someone does succeed, that’s one less thing for next year’s New Year’s resolution list.

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