It’s that time of the year again, when everyone vows to be healthier, lose weight, read more books, and spend more time with their loved ones. But what about our financial health? Anyone who has opened a newspaper or turned on the television over the past year has heard how many Americans are struggling with mortgages they can’t afford, too much debt, and unemployment.
So with all of that going on what will you do differently in 2010 to make sure you are in better shape financially at the end of the year?
Start with Realistic Resolutions
Running a marathon may sound good, but it is not a realistic goal for someone who is overweight and hasn’t worked out in years. Deciding to start walking each day is a much more realistic goal that will result in lasting improvements. Your financial resolutions should be made in the same way; realistic changes you can implement that will lead to better habits for the rest of your life.
Resolutions that will help you save money, prepare for retirement, and improve your finances as we start another year:
1. Set a realistic budget and stick to it. Once you establish the essentials – what you need to spend money on each month – you can figure out where you can cut costs on non-essentials. If you overshoot the budget one week, put your household on a “financial diet,” and stop spending for a week to put yourself back on track.
2. Protect your identity. Identity theft is not a new problem, but the same habits that will help you protect your identity will also make it easier to maintain and improve your credit score. Checking your credit report regularly will prevent someone from stealing your identity and destroying your credit; it will also help you spot trends that are lowering your score.
3. Pay off debt. You have been saying you would do it for years and still, the debt remains. Whether it is loans from college or credit card debt, develop a plan to pay it off and include that in your budget.
4. Plan for retirement. It is never too early to start planning for retirement. The sooner you start, the better prepared you will be for changes in the market or other unforeseen issues.
5. Save money automatically. Determine how much you can save each month and set that money aside as soon as you are paid. If possible, have your bank automatically withdraw the set amount and put it in savings account. This will ensure that you stay on track with your savings plan, something you will appreciate down the road.
Making meaningful financial changes are really just like achieving a diet or weight related goal in that you can’t do it all at one time. Taking a disciplined approach that takes things one step at a time is the best way to achieve success. And when it comes to your finances – making a little bit of improvement every day will lead to a big improvement when you look back a year from now!
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Fiscal health is something that we often ignore, but by sticking to some of these 2010 Financial Resolutions, you will be in a better position when it’s time to start thinking about 2011. Contact the qualified investment professionals at FBT Investments in New Orleans. They offer a full range of personal financial planning that can help you make a plan to improve your economic outlook, prepare
