New Year’s Resolutions For A Financially Healthy 2009

    According to Mental Health America, a 2006 study showed that parents are more stressed than all other demographic groups by finances, and females are more likely than men to feel stressed by finances. Money isn’t everyone’s number one worry, but if it’s yours, why not consider the following New Year’s resolutions to improve your financial life? Resolve:

1. To write down your goals: Granted, not all dreams cost money, but many do. Money buys freedom – to travel, to retire early, to start a business, to change careers. Putting goals in writing gives them a formality and a starting point for the planning you must do.

2. To evaluate your risk tolerance: With the market turbulence that’s marked 2008, many individuals would benefit from an analysis of how much risk they want—or need—to take given what they want to achieve with their money.

3. To track your spending: If you have not purchased financial accounting software or set up a reliable accounting method of your own, do it now. Tracking expenses is the first step to getting your finances in order.

4. To consider advice on taxes and planning:  Start getting references on good tax professionals and consider sitting down with an Aequus advisor to discuss your current retirement savings picture and what you can do to improve it.

5. To cut your credit card debt: Review your balances and figure out if you can consolidate them on your lowest-rate card, and resolve to pay off an amount that exceeds the minimum – on time, every month. Oh, and pay in cash from now on.

6. To save: If you haven’t signed up for your employer’s 401(k) plan or begun a savings plan for the self-employed, do it now. Resolve to save at least 5-10 percent of your take-home pay based on your cash flow, and place the maximum in the retirement savings plans you qualify for.

7. Get ahead on your mortgage: This advice isn’t for everybody, but if you’ve paid off your credit cards by paying more than the minimum, you can apply the same principle to your mortgage payment. Every dollar you prepay will potentially save thousands in interest over the life of the loan if you plan to stay in your home long-term. Just don’t short your retirement investment plans to accomplish this.

8. Invest in yourself: If going back to college or taking coursework will help you advance in your career, plan to do it. If investing in a health club membership makes sense for your health as well as your insurance costs, do it.

9. To redefine the way you shop: If you’re an impulse shopper, break the habit in ’09. As a suggestion, make a legal pad your centralized shopping list—use a single page for groceries, stock-up goods, essential clothing or big expenditures you’ll need to make at specific times. Taking that pad with you wherever you spend money is a good way to keep a grip on your wallet as long as you don’t stray from the list.

10. To attack that miscellaneous column: Do you really need cable? How much are you paying for Internet service? Can you wear a sweater around the house and lower the thermostat? In every budget, there are items that can be cut – or at least trimmed. Take a hard look at all your “essentials” to see how essential they really are.