Financial wellness month focuses on managing debt and building stability

MILWAUKEE (CBS 58) -- Many Americans are still paying off debt incurred during the holiday season, with nearly half carrying balances into this year. January, designated as Financial Wellness Month, encourages people to strengthen financial practices and address lingering debt.

Local financial professional Tony Drake of Drake & Associates joined us on Wednesday, Jan. 22 to talk about the importance of setting attainable financial goals. These include short-term goals, such as saving for a vacation, mid-term goals like home renovations and long-term goals centered on retirement.

Debt reduction strategies include the snowball method, targeting smaller balances first, and the avalanche method, prioritizing high-interest debt. Additional advice includes contributing 10–15% of income to retirement accounts.