New Year's Financial Resolutions for 2012
"Top Ten Financial Changes You Must Make in 2012"
1. Create a real (workable) household budget. Track your spending habits and learn to control your discretionary spending (impulse buying) ...if it's not in the budget don't buy it...this will lead to increased savings.
2. Reduce or eliminate debt ...use the money you are saving to pay down consumer debt (not your home mortgage � you should refinance that at the new lower rates). Once debt is gone, grow your savings and retirement accounts.
3. Increase savings...stuff happens and you need to be prepared...your savings account protects your retirement account from being depleted in the event of an emergency. Have up to 6 months of cash on hand to handle the unexpected.
4. Set aside more money for your retirement...you're going to want to retire some day and Social Security alone won't cut it. Use one of the "Retirement Calculators" in the website to help you determine how much you need to save to meet your retirement goals. Time is your best friend here...don't waste it.
5. Review your insurance policies and update your coverages...your needs change over time and insurance rates have come down on many types of insurance...take advantage of this.
6. Reduce or eliminate bank fees...talk with your banker on how you can best use their services.
7. Get control of your credit cards and reduce their number down to 1-2 cards...with ID theft on the rise, carrying around a lot of plastic is only going to get a lot more risky...it's easier to keep track of just 1 or 2 credit cards and you can concentrate your reward bonus points for better perks.
8. Run your household as if it were a business...profitable...you can't spend more than you take in...you're not the Federal Government. Time to grow up and take control of your money.
9. Reduce you taxes by taking advantage of the IRS Tax Code. There are a lot of "Tax Laws" on the books that allow you to get a tax deduction on something you've purchased, tax-deferred growth on money you have set aside, or even tax free interest. Take time to research these rules, or ask your CPA to help.
10. Set Financial Goals for 2012...know what your "Net Worth" is (that's what you own, minus what you owe) and seek to increase it by the end of the year. Your "Net Worth" grows by reducing debt, increasing savings, and growth of your investments.