The New Year is almost upon us. Personally, I love making New Year's Resolutions. Not that I keep them any more than the average person, but I love to sit down, take stock of the last year, and look toward the future. I think of my resolutions more as goals than as laws written in stone. I usually get overly ambitious and make far more of them than I can possible keep anyway.
One of the areas in which I always make resolutions is financial. Past resolutions have included stopping use of credit cards (we have slowed down to barely a trickle), building an emergency fund (still working on that one), and learning about investing (I'm still a neophyte there).
Here are my resolutions for 2002:
1) Fully fund my $1000 emergency fund by June.
2) Pay off smallest remaining credit card balance ($2500) by December.
3) Put all extra money (tax refunds, extra paychecks, miscellaneous income) toward emergency fund, then credit cards.
These resolutions have several things going for them. They will be easy to keep because 1) there are only a few of them, 2) they are realistic given our income, and 3) they are specific. I know exactly what to do and how to do it. At year's end, I can tell whether I've failed or succeeded.
I encourage you to make a few financial resolutions of your own. Maybe you're already out of debt. That's great! Your resolutions can include contributing to a 401K or IRA, saving 10-15% of pretax income, or starting education savings accounts for your kids. Maybe you are teetering on the edge of bankruptcy, unable to pay your bills. Your resolutions may include making a list of all your debts so you can assess your true situation, meeting with a financial counselor, or reading a book that will help you formulate a plan to improve your situation, like Dave Ramsey's Financial Peace (www.daveramsey.com).
If the word "resolutions" has negative connotations for you, think of them as goals, or just making a plan. Without some kind of plan, you are just drifting. Things can get out of control that way. You're much more likely to stay on track or make progress with a plan or some goals.
I wish everyone the best in the coming year. I'm optimistic that 2002 will be a great year, financially and otherwise!
Jen Krausz
Go To Page: 1
