Updated: September 22, 2014
Do you do New Year’s resolutions?
Did you know that the most popular New Year’s resolutions are to lose weight and to save more money?
Well, I’m no expert at weight loss but I can surely give some advise on the second one.
And to help me with that is the National Endowment for Financial Education (NEFE). Below are their suggested seven New Year’s financial resolutions for 2010.
1. Control spending
If you spend less you’ll have more money available to pay down debt and save for the future. Write down your expenses for a month to see where your money is going. You might be surprised by how easy it is to find places to scale back.
2. Create a debt repayment plan
If you carry credit card debt, write down everything you owe and make a plan to pay it off. Start with small items you can act on right away – it will make tackling the bigger debt easier. Also, try buying with cash only. It’s a sure-fire way to prevent increases in your credit card debt.
3. Set up auto-savings plans
Arrange with your bank or another financial institution to have a set amount deducted from your checking account to a savings account each pay period. Of the Americans who have been able to contribute to emergency savings funds, automatic withdrawal is the most popular method, according to the Consumer Federation of America. (In the Philippines, there’s BPI Direct Save Up and other similar products)
4. Boost retirement savings
If your employer offers a 401(k) plan, increase your contributions. If you don’t have an employer plan, open an Individual Retirement Account (IRA) and arrange for contributions to be made automatically from your checking or savings account. (We’ll talk about retirement planning in the Philippines soon)
5. Create a long-term plan
Write a list of your long-term goals, such as buying a home or saving for college or retirement. After you’ve written them down, it will be easier for you to come up with concrete steps on how to achieve these goals.
6. Protect yourself
Be prepared for the unexpected by making sure you, your family, your assets and investments are insured and fully covered. If you do not have a will, make 2010 the year you establish a life plan.
7. Find a financial buddy
Share your financial resolutions with a friend, colleague, or family member, and you’ll be more likely to keep them. Find someone else who wants to turn around their debt or cut their spending, and establish a mutual support system.
Get ready for more money advise and tips in the coming year. Be sure to subscribe to Ready To Be Rich and never miss an article here.
Photo credit: dixieroadrash and _ES.