Financial Resolutions for a New Year & a New Century
Without a plan, without goals, how can any of us know
where we're going financially? The start of a new century is a good time to set your
priorities and resolve to do a better job of managing your money.
Step 1 - Pay yourself first. Have your bank transfer money from checking to savings each
month, or set up an automatic savings plan where you work. ($100 socked away regularly
each month and earning only 8.5% grows to $18,000 in just ten years.) Make your own
savings plan your most demanding creditor.
Step 2 - Eliminate consumer debt. Avoid those whopping 18% credit card interest charges.
Pay off your credit card bill in full each month. If you can't do that, it's time to cut
up the cards and start buying only what you can afford to pay for in cash.
Step 3 - Diversify your investments. Spread your risks among treasury bonds, money market
savings accounts, stocks, corporate bonds, real estate, and savings bonds. The recent
nosedive in technology stock prices is a clear illustration of the wisdom of not putting
all your eggs in one basket.
Step 4 - Profit from tax-deferred savings. Contribute to an IRA or take advantage of your
company's 401(k) plan. If you have self-employment income, set up a Keogh plan, a SEP, or
a SIMPLE.
Step 5 - Bring your estate plan up to date. There's more to it than putting assets in
joint names. Have your will reviewed by a lawyer, and resolve to start a personal
financial plan.
Step 6 - Set long-term financial goals and write them down. Work within three time frames,
setting one-year, three-year, and ten-year goals. Evaluate your progress each year, and
make adjustments as appropriate to achieve your goals.
Related Information:
Beware of online stock scams
Financial Planning For
Women
Personal
Financial Planning
Review and Rebalance
Your Investment Portfolio
Review Your Mutual Funds
Simplify Your Financial
Life
Take Advantage of
Falling Interest Rates
© Copyright 2001 Raymond S. Kulzick. All rights reserved. 010105.
This publication provides business, financial planning, and/or tax information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance.