If one of your New Year’s resolutions for 2012 is to improve your finances in some way, join the club.
According to a survey from TD Ameritrade, 73% of Americans will make at least one money-related New Year’s resolution.
Regardless of your current economic circumstances, here are 12 crucial and doable financial goals worth putting on your list of New Year’s resolutions for 2012 – along with some tips and resources to ensure your financial success.
1. Get a better credit card deal
If your credit card interest rates are higher than the national average of 15 percent, it’s worth shopping around for a better deal. Visit CardRatings.com, a free credit card comparison site, to search for the best credit card offers available based on your credit profile and spending habits. For those of you who’ve been asking yourself: ‘how do I get out of debt?’ lowering your interest rates is a strategy to help you do just that.
2. Reduce debt
Consumer Reports has found that in late 2011, 14 million Americans were still paying off their holiday bills from 2010. If you haven’t been able to get out of credit card debt on your own, try boosting your financial fitness by joining the free financial boot camp offered online via MyMoneyCircles.com. This practical, step-by-step program will help you reduce debt, figure out how to save money and reach a host of financial goals, including all of the financial New Year’s resolutions on this list.
3. Improve your credit
Your credit rating is enormously important, and impacts everything from the rates you’ll pay on loans and insurance to whether or not you can rent an apartment or get hired for certain jobs. If you’ve been neglecting your credit (or worse, abusing it), it’s time to turn your credit and financial health around. Start by checking your credit reports at no cost at AnnualCreditReport.com. By law, you’re entitled to one free copy of your credit report every 12 months from each credit bureau: Equifax, Experian and TransUnion.
4. Increase your savings
Don’t feel like you can save more money – or are you simply fed up with getting next to nothing on the savings you are stashing away? Maybe the best way to begin saving more money is just by getting a different savings account; online savings accounts boast rates that are sometimes five times the national average. Use MoneyRates.com to find which banks are offering the highest interest rates on savings accounts, CDs and money market accounts.
5. Create a will
This is one of those tasks that most people procrastinate about and never seem to find the time to do. To overcome this obstacle, just tell yourself that if you finally create a will in 2012, it will be a major “to do” item that you can scratch off your list.
Creating a will doesn’t have to be expensive either. You can create an affordable online will for just $69 at LegalZoom.com or Nolo.com.
6. Insure your life or property
A string of major natural disasters in 2011 reminded us all about the power of Mother Nature – and of the need for insurance to protect against such calamities. There was a deadly tornado in Joplin, Mo.; Hurricane Irene wreaked havoc on the Northeast; and a massive earthquake and tsunami devastated Japan. Likewise, the untimely death of Apple founder Steve Jobs served as a sobering reminder that none of us will live forever. So if you’ve put off getting life insurance or making sure you have proper insurance protection for your home or car, go to Insure.com to comparison shop for the best insurance rates available.
7. Schedule an appointment with a financial advisor
It’s always a good idea to get a qualified professional to take an independent look at your overall financial picture. To find an affordable, fee-only financial advisor, get a referral from the National Association of Personal Financial Advisors. The beginning of the New Year is a great time to set up a consultation with an accountant or financial advisor who can tell you everything from what areas of your finances could stand improving to overlooked ways you can save on your taxes.
8. File your taxes early
Speaking of taxes, make a pledge to yourself to get your income taxes filed early this year. That way you avoid the last-minute stress of the April tax-filing deadline. Early filing means you will also get any tax refund due you much sooner. The Internal Revenue Service recommends e-filing as the speediest, most efficient way to process your tax return. You can learn more about filing a tax return electronically, including whether or not your income qualifies you for free filing, at IRS.gov.
9. Organize your financial paperwork
Before you file your taxes or meet your accountant/financial advisor, take some time to organize your financial records. Use whatever system works for you: including keeping paperwork in a file cabinet or an accordion folder. For electronic storage of your records, check out NeatReceipts an easy-to-use, lightweight product that helps you quickly scan and organize all kinds of paperwork, including pay stubs, receipts and business cards. The NeatReceipts scanner also lets you export financial records from your computer to Excel and tax preparation programs like Quicken.
10. Set a budget
Does the dreaded “B” word – budget – make you cringe? It really shouldn’t. Not when you realize that having a budget, and sticking to it, offers a host of terrific benefits. A budget aids your monthly cash flow; it prevents over-spending; and it can help you avoid living paycheck to paycheck. Still not convinced about the power of budgeting? Try using the free, online budgeting tools offered by Mint.com. They keep your finances organized and make budgeting easy from wherever you are.
11. Plan for retirement
Have you put off joining your workplace retirement program? Maybe it’s time to take advantage of matching retirement contributions your employer may offer through a 401(k) or 403(b) plan. Doing so now could pay dividends for years to come. Learn about the value of a 401(k) at the Employee Benefit Research Institute.
12. Just do it
Make a pledge that 2012 will be the year of “no procrastination.” Too many times, we hurt our own financial progress simply by putting things off month after month, year after year. Instead of constantly delaying and procrastinating over financial matters you know you need to attend to, simply get them done. No delay, no excuses.
Setting financial New Year resolutions is a smart way to put your economic goals at the top of your “to do” list for 2012. By using the ideas above as a checklist of actions to take, you’ll start off the New Year on solid financial footing.
