New Years Resolutions – Improve My Finances

Maybe your goal for 2012 is to improve your finances. It is one of the top 5 New Years Resolutions in some form or another. But like most New Years Resolution, they are hard to keep. That is why losing weight is always number two or one on the list. People want to lose weight but can only commit for the first few weeks of the year and then they fall off the wagon. And once you fall off, it is hard to get on

My own debt I would compare to yo-yo dieting. I go up in debt and then come down. This is especially true after the holidays. I definitely spent too much. Gifts for nephews and cousins, that will be soon forgotten. But maybe that is not the right attitude. I like giving but not saving to give.

As my debt consistently rises at the end of the year. I find myself committing every year to same old resolution, pay off the debt. But as you learn as a manager, a goal is great you need action steps to actually get to the goal. So what are the action steps to get me there.

  1. Do a monthly budget – This is something that I need and will be essential to figuring out where my money is going. And because I should run my finances like a business. This needs to be done for the year and monthly.
  2. Reduce spending – as it is not always easy to boost earnings, cutting is the next best way to put money in my pocket and towards reducing my debt to credit ratio. Things like my phone bill, utilities, car insurance, and TV have room on them, that can turn into saving. Actually I found insurance company that would charge me $80.00 less per month, this is a nice monthly savings already.
  3. Adjust my taxes – I am no longer single but I have always claimed this way. Every year I would get back a large sum on my taxes. Well, looking at I always liked the idea but really, this is money that government is getting from me interest free. I want this money in my pocket now to pay down debt. If it doesn’t seem to be working I can always change back but stay tuned as I will let you know how it is going.
  4. Find A Second Job – As much as I hate the idea and the job market is rough, I think I will need a second job this year. I want to get ahead and really pay down this debt quickly and a second job will really give my finances a needed boost. Just heard Home Depot is hiring 70,000 workers, maybe that is a starting place.
  5. Discuss My Finances More With My Wife – we hardly talk about money and this has always been an issue. There is no doubt that not talking about money makes us angry. Something so simple but difficult. Money views are different and can be a struggle to find common ground.

The benefits of all of this, far exceeding a better relationship with my wife is a safer financial place. Debt equals worry and it is not needed. Plus, all of this work will give my a boost in my FICO score and set me up to buy a house in the coming year.

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Posted in Credit Cards, economy, Employment

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