We recently hosted a chat on Twitter with a few experts and bloggers to talk about 2010 money resolutions. Here are some highlights from the chat:

 

Why are money resolutions important?

 

Money resolutions act as a mental reset button, organizer and affirmation all in one. Resolutions also power focus, commitment and the ability to set monthly/weekly/daily targets and action plans. (@Taranicholle) 

 

Money resolutions also make you prioritize what is important to you. (@MoneyWizdom)

 

They're like financial planning goals - if you don't know where you're going, all roads look alike. (@EleanorBlayney)

 

 

 

What types of money resolutions should be on top of the list?

 

The ones you can keep! Go for an easy win to build up resolve – ex., increase your 401(k) contribution. (@EleanorBlayney)

 

Paying down high interest (credit card) debt is always a good move. (@MichaelBRubin)

 

For me it is how to keep saving for retirement and pay down debt. (@MoneyWizdom)

 

To create and demand your value in the marketplace. (@taranicholle)

 

 

 

What really works for keeping your money resolutions?

 

 Writing them down and checking once a month. (@MoneyWizdom)

 

Resolutions must be realistic. Set yourself up to succeed! (@MichaelBRubin)

 

Have a clear, realistic action plan with a vivid image of the "after" picture of your life. Accountability coach or partner helps execute money resolutions, too. (@Taranicholle)

 

Keep yourself accountable to a money buddy; plan small rewards for keeping resolution. (@EleanorBlayney)

 

 

What tools or resources do you think help with money resolutions?

 

You must know where you are already to improve, so I like personal finance software like Mint or Quicken. (@MichaelBRubin)

 

My favorite strategy is use a debit card -- you see every transaction -- and download my checking account to Quicken; this keeps spending visible! (@EleanorBlayney)

 

 

 

What are the pitfalls to watch out for with keeping money resolutions?

 

Thinking everything will be fixed by Valentine’s Day. (@MichaelBRubin)

 

Not setting manageable, realistic, quantifiable goals. A bad goal is to “save more,” whereas a good goal is to “save $10 a week.” (@EleanorBlayney)

 

Not planning or having cash reserves for unexpected expenses. You can't let those completely derail the plan. (@marielinha)

 

What can we do now so we're ready for 2010 money resolutions?

 

Know what you accomplished in 2009. (@MoneyWizdom)

 

Do a year-in-review of spending, savings, and investment performance and put money disorder into order. Plan money "completions" for 2010 (debts, saving changes to service providers, etc.) and calendar Fiscal Health Days for 2010. (@Taranicholle)

 

See your tax person for 2010 tax moves; rebalance your portfolio (take some losses). (@EleanorBlayney)

 

There’s nothing magical about January 1. Start 2010 today. (@MichaelRubin)

 

 

 

What should we know about the 2010 economy?

 

Even economists can't predict the economy, so focus instead on what you can control: spending, saving, diversification. (@EleanorBlayney)

 

2010 will be the year of recovery and repositioning YOUR personal economy to thrive - if you make it that. (@Taranicholle)

 

 

 

Should I bother with the small stuff in 2010 like quitting lattes or focus on big stuff?

 

It's the small, it-doesn't-matter stuff that can add up to big trouble. Furthermore, small stuff is easiest to knock off. (@EleanorBlayney)

 

A major focus on big expenses will help more and more quickly. (@MichaelBRubin)

 

Both. Big stuff means quick wins. Small cuts/frugal living increases money for paying down debt, saving and investing long term. (@FrugalDad)

 

 

 

Any last-minute tax things we should do before end of 2009?

 

If you itemize, finish donations. (@MoneyWizdom)

 

Make charitable contributions in December rather than January. Also, if you're going to get a refund, file early in 2010 and adjust withholding to prevent it from happening in 2011. (@MichaelBRubin)

 

If self-employed, set up Keogh – you don't have to fund it, but do have to set it up. Take capital losses in investment accounts. (@EleanorBlayney)

 

If you don't feel well-served by your tax preparer/CPA/EA, get references and hire a new one! Also, If you bought a home, did a short sale or had a foreclosure in 2009, find your HUD-1 closing statement or get a copy from your realty agent. (@taranicholle)

 

Sell off any losing stocks to offset gains. Spend anything left in medical FSA on eligible items. (@FrugalDad)

 

Thanks to experts Michael Rubin, Eleanor Blayney, Denise LaBuda and Tara-Nicholle Nelson for participating! You can look for future LifeTuner events over at the Community Page.

This blog entry was featured in Tax Carnival #61: Stocking Stuffers 2009 and Carnival of Money Stories!