New Year’s Resolutions to Stick With
by Efin Advisor | January 4, 2009
Why do we make New Year’s resolutions? Mostly because we realize we would be happier and more satisfied if we were to achieve these meaningful goals for ourselves and our loved ones. Where there’s a will, there’s always a way.
In these unsettling economic times, setting goals for safeguarding your financial health is an important priority. If you can resolve to stick with these resolutions, you will be better prepared to deal with life’s unexpected, but inevitable, twists and turns.
1. Accurately assess your Financial Assets.
Take a look back at your credit card and bank statements over the past year and pay attention to what you are spending and where you are spending it. Can you keep up this rate of consumption or should you save or invest more of your money? Make an honest appraisal of where your money is going. Often times, conducting a simple personal audit will be eye-opening if not jaw-dropping.
2. Improve your Credit Score.
Check your credit score to make sure everything is in order and double check to see if there is anything in your profile that will make potential lenders wary about lending to you. By improving your credit picture, you will be able to receive a better deal on loans. This could mean everything from a potential refinance of your mortgage to a better auto or credit card rate. Try to pay off your credit card bills as this will improve your credit score as well.
3. Review your Contracts.
Over the years, your cable bill, phone bill, and any other service plans or agreements you may have signed up for, may be costing you more than you think, or want. Now is a good time to consider streamlining or renegotiating service plans. See if you have the best package for those extra cell phone minutes or cable TV programs. You may not have to change your account relationships. There may be a better value from the company you are currently doing business with.
4. Prepare for the Unforeseen.
Every year accidents and tragedies happen to millions of people. Are you prepared? Take stock of the state of your life insurance as well as your property, auto and health insurance. A few weeks back we wrote about an alarming life insurance gap. Make sure your family is protected and there is not a gap between what they may need to stay afloat and what life insurance coverage will make available. Insurance is what will be there when you can’t be.
What’s your 2009 New Year’s Resolution for financial fitness?
I know I’m going to be a little wiser with how i spend my money (in addition to all of these suggestions. Thanks efinancial! god advice). I think eating out less, using less paper towels, takeing shorter showers etc. I’d also like to lose weight but that’s neither here nor there. Just hte little things, because they will add up a lot faster than you think.
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I think these are all great suggestions, but I’d like to add one of my own, if no one minds. Take a good long look at who you are investing with. Think about how many people got screwed by Maddoff because they either werent reading about who they were investing with or were taking too much for granted. A lot of people said that his funds were a llittle sketchcy and the people who ignored that are now worse off. May this be a reminder to everyone to check where the money is coming from
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My new year’s resolution for this year is to budget myself better. The economic crisis has given me a harsh awakening to the fact that I need to know where my money is going. Now, each month I have alloted a part of my earnings to savings, and a part for life insurance, in case something should happen to me. Before, I used to spend my money on whatever I needed or wanted from day to day. Hopefully, this new year and all new years will hold better times for my family.
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Ben, I like your idea very much, but I am at a loss for how to accomplish it it. Does anyone have any ideas about how you can find out if your money is being handled poorly? I am very temped to remove my money from any sort of investment because I am unable to determine the feasibility of my investments. I have been thinking that given the tough times, perhaps my money would be better off buying some life insurance for my family in case the unthinkable occurs.
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checking your contracts is sage advice. I just looked over my phone companies plans and realized i was getting totally screwed. I save a lot of money by just looking at hteir website for 15 minutes. After that, i also realized my cable company had a special offer that i could take advantage of that also saved me a bunch of money. I seriously recommend every do this. Its so easy and saves so much money
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I have actually been attempting to comply with number 3 already, reviewing the contracts that provide my internet and television, but I am very concerned about the digital switch that is looming over my head. I am afraid that I will have to pay more money for the same television programs I get now, because companies will charge for the cable, and a fee per month for a conversion box, or a higher fee for a digital box. It is ridiculous that the government sold our public airwaves, and now we will have to pay more. Does anyone know if there is any recourse I can pursue if the prices for my tv go up, now that the companies have no obligation to honor my current contracts?
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