Financial Resolutions For 2011
Financial Resolutions For 2011
Financial Resolutions For 2011
Who doesn't like the fresh start of a new year?A clean slateand an optimistic outlookmake January 1st a magical time.The only problem is that every year we vow to take care of our finances, but we ultimately get sidetracked with excuses.But this year will be different, and to help, here are some smart money movesfor the New Year.
Read More From Investopedia
8 Easy Ways To Slash Your Holiday Budget
5 Keys To Unlocking A Better Credit Score
Budgeting When You're Broke
Review the Previous Year
What better place to begin a new year than to reflect upon the past?Take a look at last year's budget, identify the good and bad money moves you made last year and resolve to make the necessary improvements for the upcoming year.
Set One Financial Goal
Keep it simple this year and set at least one goal you'd like to achieve by the end of this year, then put all of your focus and energy towards achieving the goal.
Some financial goals could be to:
If your money seems to slip through your fingers before you can save any of it, putting yourself on an automatic savings plan to debit even $50 per month from your account is a good way to save without feeling the pinch. If you don't see the money, you won't miss it andbefore you know it, that $50 per month in savings will be $600 at the end of the year.
If your problem is more that you keep forgetting to pay bills and end up paying interest on overdue bills, you can also automate your bill payments by calling the companies directly to ask if they can debit your account every month, or talk to your bank about automating your recurring bill payments.
This is probably the area most people are afraid of. Of course it will all look confusing to begin with if you want to tackle everything under the sun in a short amount of time. So start slow andsimple with something like learning what bonds, stocks and mutual funds are. For each topic, apply your newfound knowledge towards your money so that the information becomes relevant to you.
Your company might also offer free seminars to understand your finances better. You can also go online to learn the basics at your own pace. (Make it to the end of the month, before you run out of money.
For anyone who is in debt, it is really better knowing what your financial situation is than to stay in the dark.Next, create a budget listing your net income per month and where you plan to spend your money in each category.
Once your budget is done and you know what you have to work with, make a separate plan to get out of debt. Start by listing all of your debts, their interest rates and minimum monthly payments.
Now minus the total amount of minimum debt repayment you'll have to make each month, and whatever is leftover should be applied to eitherthe lowest debt balance you have or on the debt with the highest interest rate.
As you clear each debt, take the amount you used to pay towards that debt and apply it to the next debt in line until you're debt-free.
You may find that your minimum payments equal or exceed 15% of your net income. In that situation, you will need to adjust your budget percentages and cut back on your housing, life or transportation costs, or simply make more money.
Don't rob your savings category in the beginning to pay down your debt. You should save a minimum of $1,000 for emergencies before adjusting your savings.
Automate Your Finances
Improve Your Investing Knowledge
Get Out of Debt
Make a Plan
Keep it simple and make sure you've covered all the bases for each goal. For example:
Goal: Save $5,000 by the end of the year for an exotic holiday vacation.
Step(s): Save an additional $417 per month, or $208.50 per bi-weekly paycheck.
The Plan: Review your budget and set up an automatic withdrawal from your paycheck into a savings account.
The Bottom Line
There are plenty of other goals out there, such as buying a home, a new caror going on a European vacation. The main thing to remember is that without a plan, your goals will always be dreams.
Manufacturing Industry Is Facing Severe Financial Problems - Manufacturing - Machine Tool Industry Regulators Try to Handle Financial Threats of US Foreclosure Problems When You Achieve Better Gas Mileage, You Achieve a Better Financial Position INTERNATIONAL FINANCIAL REPORTING STANDARDS V. GAAP Financial Assistance For Those Facing Foreclosure - How to Possibly Get Them Dodd-Frank Bill to Create Powerful Consumer Financial Protections Bureau How Can I Start to Get My Life on Track, With Financial Worries Nagging at Me? What You Should Never Do When Applying For Financial Assistance What You Need To Always Do Prior To Obtaining Financial Assistance 5 Steps to Create Financial Opportunity A Naperville Cpa For Your Specific Financial Needs Set And Reach Financial Goals With A Savings Account Financial Help In South Dakota