10 Financial Resolutions For New Year

As 2011 winds to a close, time has once again come to make your new year's resolutions. Every year we notice that we make the same types of decisions, and then we wonder how we end up in the same situation once again. But as you are going to commence into the new year, lets try something different. Talking about personal finance, you undoubtedly wish to set financial goals for yourself and look for change for the better.

With the goal of having a clear, concise financial goal for the coming here year, here are some ten resolutions to consider as you enter a new year.

Learn One New Thing About Investing This Year

Try to gain a sound financial knowledge. Because the more information you receive and keep yourself updated with the latest information, the better investment decisions you can make. You will not have to depend on others to help you deal with your own money. You can opt for Take an online investing class.Read various books on investing or finance. You can also subscribe to a financial publication.

 Make Your Own Personal Financial Statement

The perfect way to begin this is to first get a clear picture of finances and know where you stand. whether you are deeply buried in debt? Know what your net asset value is. Track your finances every month. Use spreadsheet to do this and you can clearly see your progress and also track where your money is being wasted. You can check online on various financial sites of how to calculate your own personal financial statement.

 Prioritize Your Debts

Not all debt is created equal. Make a list of your liabilities and organize them by the annual interest rate. If you wise enough you that in order to have a good financial security you have to pay off the debts that have the highest rates. Staying in debt and at the same time saving money does not make sense. So prioritize you debts and start clearing them as soon as possible.

 Enroll in an Automatic Savings Plan

Now a days most of the financial firms offer automatic saving plan. This requires you to call your broker and inform them you want a certain amount of money withdrawn from your checking or savings account each month, on a certain date and that amount has to be deposited into your investment account. In this way you are forced to save because the cash is drawn directly from your bank before you can get your hands on it

 Close Unnecessary Accounts

Every service the bank offers your are being charged. So you can calculate the amount you will be charged for the different accounts you hold. Ask yourself do you really need so many accounts? More the number of different financial accounts you hold, the more messed up your finances get and this also leads to financial stress. Try and limit the number of accounts you have, so that it will be much easier to handle your money.

 Spend Less And Save More

A very common saying that is very powerful. The day you really start implementing this you see the numbers increasing in your accounts. Know what is your needs and wants. Try and live live on a strict budget that will help you save money and will avoid splurging your money on unnecessary objects. whenever you go out for shopping, make sure you have a list and restrict yourself to that list. Avoid impulsive buying. Use different methods to save your money. Investing in stocks, piggy bank, mutual funds, gold and so on.


Find The Right Financial Advisor

One wrong advice and one wrong move can drastically effect your financial life. Many of us consider hiring a financial advisor because we find it difficult to manage our money. This could be lack of sufficient knowledge or time. whatever the reason could be, make sure the financial advisor you choose is the right person who will help you make the right decision. Even if you prefer to do things yourself, the occasional check up from an advisor who charges hourly fees may provide you with some valuable tips.

 Get a Life Insurance That is Not Expensive

If you have dependants, getting appropriate life cover in place should feature pretty high on the financial priority list. If you don't receive this benefit from your employer, contact an independent financial adviser. If you already have life insurance, use the new year to get going and see if you can get a cheaper equivalent deal. The difference between the cheapest and most expensive deals can be significant, so check if you can get your policy at a cheaper rate.

 Long-Term Money in The Stock Market

Paying down debt and saving for an emergency situation like recession is on the priority list for many. So for this you can consider investing in stock market. Over five years investors can certainly hope to make a return � especially through some of the emerging markets. You can check which company is performing well and consider investing in those stocks.


Begin Using Personal Finance Software

Bu using certain personal finance software you can track how much money you have spent. You don't have to sit monthly reviewing your fiances. This will give you complete details and you will shocked on knowing the amount you spent knowingly or unknowingly.