New Year’s resolutions – Creating a Financial Plan

If you were to examine the lists of New Year’s resolutions that average people make you’d probably discover that “make a financial plan” shows up quite frequently.  Almost everyone wants to improve their financial status.  A lot of people want to have more money or be better managers of the money they do have.  Many want to achieve a financial goal, whether it’s buying a new house or a new car, or saving for a child’s education or a long planned trip.  A lot of people want to do more and better when it comes to money.

Like a lot of New Year’s resolutions, the ones that involve money can quickly fade into nothingness.  If you’ve made, or are planning to make a resolution regarding your finances this New Year’s Eve, here are some tips that will help ensure your resolution lasts longer than the bubbles in your New Year’s Eve beverage.

Tip 1:  Determine Your Goals – If you don’t have kids yet, planning for their future isn’t high on your priority list.  If you’re near to retirement,  financing your life after you stop working is a high priority.  When forming your financial plan the first thing you need to do is determine where you are and where you want to go.  You financial plan should take into account your goals and what’s important to you.  Working to save for a goal you don’t really want to achieve is a sure recipe for disaster.

Tip 2:  Make a List – A lot of people, particularly those who are dealing with a tight budget, don’t like sitting down and listing their debts and their income.  It’s can be a bit disheartening.  Despite the fact that confronting your debts and obligations can be difficult, it is necessary.  The only way you can move forward is to establish where you are right now.

Tip 3:  Mark Your Path – You now have a list of goals and a list of income and debts.  Using these two lists, it’s time to plan how you will achieve your goals.  Determine how your money will be spent and how much will be saved every month.  Allocate monthly debt payments.  Create a budget that allows you to meet the goals that are important to you while still living a reasonable lifestyle.

Tip 4: Learn From the Experts – There are some sites that can help you learn more about financial planning

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