8 New Year's Commitments for 2008

[Harrine Freeman]

Here are 8 New Year's Commitments that will improve your financial life, reduce stress, end fights regarding finances, and bring peace to your life.

1. Save Money - Create an emergency fund with enough to cover at least 3-6 months worth of bills. This will prevent you from getting into debt. For long-term goals create a savings account with a high interest rate and make plans to save for retirement.

2. Further Your Education - Take training classes or get a college degree to increase your skills set and salary. Plan to take at least one training course every year during your career to stay current with industry standards and technology advances.

3. Get Out of Debt – Get current on any late payments. Negotiate with creditors to setup payment plans and pay off debts older than 6 months. This will increase your credit score.

4. Get Your Financial House in Order – Organize financial papers and store in a centralized secure location. Backup financial documents and records saved on your personal computer. Use secure websites for processing transactions and storing personal information, i.e. bank accounts, automatic payments, etc. Organize your home office with file folders, file cabinets, etc. Make copies of all personal documents and store in a fire proof safe. Develop a will and designate or update beneficiaries for life insurance policies.

5. Trim Spending - Don’t live above your means. Buy needs more often than wants. Find ways to reduce expenses to help pay down your debts. Catch public transportation or carpool to work. Buy items or sale, use coupons, or shop at wholesales or thrift stores.
   
   
6. Limit Credit Card Usage - Use your credit card for emergencies only. Don't use your credit card to purchase gas, food or other everyday items. Keep credit card balances at 40% or below the credit limit. Pay balances off at the end of the month.
   
   
7. Develop a Flexible Spending Plan - Write a list of all of your total monthly expenses including debt and write down your total monthly income (net). If you have any money left over use that to pay down your debts. If you do not have any money left over look at the areas where you can reduce expenses.

8. Don't go into debt at Christmas - Don’t overextend yourself buying gifts at Christmas, buy gifts throughout the year to limit credit card usage and help spread costs for gifts over a period time. Even starting shopping in November will reduce costs and stress felt when shopping in December.

[Diane]

Thanks for the tips Harrine!

I've actually practiced most of these and should try to do a little better on others. I think my biggest 'bugaboo' is the organizational part. Ugh.

However, I'm making that a priority in the '08. I'm commiting 15 minutes of each working day to organization and cleanup.