Establish/Adequately Fund My Emergency Reserve: You should have at least 3 months of required expenses (mortgage, food, auto expenses, utilities, etc.) in a readily available account. If not, start building up this reserve.
Know Where My $ Goes: If you want to make changes in your spending habits to cut expenses or you need to save for a financial goal, you need to know where your money goes. For a simple form to help you, go to: Income and Expense Worksheet The GREEN categories on the form are where "the gold is buried" to save on your expenses.
I Will Set My Financial Goals and Priorities: Developing a goals list with other members of your household is key to accomplishing them. For a form to help you with this, go to: Financial Goal Worksheet
Develop a Spending Plan: Look at where you are spending your money and consider reducing optional expenses (dining, entertainment, etc.). Try and keep track of where you are spending your money. This will help if you need to make decisions to cut back.
Talk About Finances w/Family Members: This can lead to some difficult conversations, but it will be worth it in the long run. It will help you get on the same page as others in your household and may assist the children in understanding why they might not be able to have everything that they want.
Update My Beneficiary Designations: Review your life insurance policies and retirement account beneficiary designations. Are they still appropriate? Do you have a secondary or contingent beneficiary(s), or do you need to change or appoint new ones? You do not need to know who you have previously designated. The new forms will, when filed, take precedence over previous filings.
Review My Insurance Coverage: This applies to all of your insurance policies (auto, life, homeowners/renters, disability, long term care and umbrella). Are the policy limits adequate, should the deductibles be raised, is there a less expensive policy with similar coverages, are you taking advantage of all of the discounts offered to you by your insurance companies?
Get and Stay Out of Debt: If you have a credit card balance, work to pay it down and if possible, eliminate it. Pay the current charges, and budget as much as you can each month to pay against the balance. Try not to add to it.
Save for My Children's Education: If you haven't already done so, establish a specific fund for each child's education. Let relatives know so they can contribute to it. For more information, go to: Helping Your Children Pay for College Pay Myself First: Set up an automatic savings plan if you don't already have one. Write your first check each pay period to that account. Even a small amount per week is a great place to start. Pick a specific goal and periodically monitor your progress.
Take Control of My Investments: Determine your risk tolerance and rebalance your portfolio.
Maximize My Retirement Contributions: For some ideas, go to: Maximize Your Retirement Contributions
Review My Will and Other Legal Documents: The main reason people don't do this is that they believe they will never die. Unfortunately, the fact is that we are not immortal. Whether you have a simple or complex estate, you need a will along with a durable power of attorney, a "living will" and a power of attorney for health care. Make sure these documents are current; and by all means, if you don't have them or they are over five years old, see an attorney.
Reward Yourself: As you accomplish a resolution, give yourself a reward. It doesn't have to be expensive. In can be a new book or movie out. And if you don't or can't achieve your goal, don't get discouraged. Learn from your mistakes, and adjust your resolutions to meet your current circumstances.
Seek the Advice of a Professional: They can help to set your goals, identify areas of need, promote financial discipline and follow up.
Remember, the idea here is to make long term, sustainable financial changes that will eventually become second nature to you.
