With the new year under way, many are looking to make a New Year's resolution to improve their finances.
Some helpful tips for making a financial resolution include:
- Know what you want. Don't just say, "I want to savemoney." Put a firm number to it. For example, "I want to save $2000" and pay off aparticular credit card. Then make a planto DO IT.
- Prioritize your debts. Notall debt is created equal. Make a list of your liabilities and organize them bythe annual interest rate. Then,concentrate on paying off the debt with the highest interest rate first. Pay off the one with the next highest ratenext, and so on.
- Openan IRA. If you haven'tdone it yet, try to open an IRA or a ROTH this year. Then, fund it with an equal monthlycontribution. Get into the habit ofsaving.
- Reviewyour Portfolio. It is easy to just "slide along" and not review your accounts. Make a plan to go over your retirement planand your investment portfolio with your spouse, or even call your investmentprofessional and do a thorough review with him/her. Things change through the years, and you mayneed to update your plan, change beneficiaries, or even change your investmentsbecause you might have a change of objectives.
- Read afinancial book. Thisis one that many find hard to do. But try to find a good financial book andbecome more educated on investing and finances. Go to the library, look in abookstore, or even just Google financial books to find one that has the mostinterest to you.
One of the easiest and most important things you can do is to go see yourinvestment counselor. Most arehappy to do reviews and try to help you with your financial goals andproblems.