Financial Resolutions for the New Year

Dec. 31, 2009— -- The year 2010 is almost here and many people are looking to save money in the new year.

"Good Morning America" invited Cody Willard of Fox Business Network to share some of his advice on how to keep that financial resolution and your bank account in shape.

Three Ways to Save in 2010

Savings Account vs. 401(k)

Willard said it's best to be as defensive as possible. That means putting your money in a savings account rather than a 401(k).

"I think people end up paying way too much attention to the tax implications of their 401(k)s and IRAs," Willard said. "Instead, you should really just focus on saving that money."

Having your money in a savings account and getting a return of about 1 percent interest has been better than betting on the markets in the past couple years, Willard said.

Buying a Home vs. Renting

When it comes to purchasing a home, Willard said, consumers should really think carefully before leaping into big loans.

"We've had some stabilization temporarily here," Willard said. "[But] I think there's way too much risk in real estate."

Rather, Willard said, consumers should consider renting, which he said was a better return on their investment.

Get Out of Credit Card Debt in 2010

Credit card debt

When it comes to credit cards, Willard has simple, strong advice: Get out of credit card debt.

"It's more important than ever," Willard said. "Pay it off."

Willard still encouraged customers to call their banks in an effort to lower their credit card rates but, he said, that should take a backseat to figuring out ways to pay off whatever is owed.

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