As 2006 winds down, let’s take some time to look back at all the experiences, both good and bad, that we’ve had with money this year, and reflect on the lessons that we’ve learnt. This is a perfect time to make some definite plans to make 2007 a really ‘Prosperous New Year’.

Here are some money resolutions that can help you to be financially successful in 2007 and beyond:

1.   I will make a budget.

Get honest about the state of your finances by documenting all your expenses. Then write down your income to see if you’re really earning enough to cover your spending. Chances are, if you feel like you’re living ‘hand-to-mouth‘ or you’re in debt, then your income isn’t enough to meet your needs. The following two resolutions will help to solve this problem.

2.   I will reduce spending on unnecessary items.

Look at your budget to see where you’re spending too much money. Phone cards, fast food and entertainment are some of the areas where money goes down the drain. Ask yourself if you would prefer to achieve a big financial goal or to continue to waste money on frivolous items. Make the choice to save more or reduce your debt, by spending your money more wisely.

3.   I will find at least one way to make extra money.

Look for opportunities to increase your income. Whether you see a problem that needs to be solved, discover a need that you can fill, or you decide to market your God-given talents to the world, make a plan to earn more than your nine-to-five salary for 2007. Visit a business counseling agency to get help with your money-making idea.

Want to learn how to achieve your goals? CLICK HERE!

4.   I will pay myself first.

Your first expense in your budget should be your own savings. Make the decision that you will be the first person to benefit from your salary. Don’t wait until the end of the month the save, because there usually isn’t any money left behind. Make your saving plan automatic by setting up a salary deduction or standing order to put the money into an investment account, separate from your regular accounts.

5.   I will create an emergency fund.

Start building up a contingency fund now to make sure that life’s emergencies doesn’t leave you high and dry. Aim to put aside at least three to four months of your living expenses and don’t use this money for anything except a real crisis.

6.   I will seek professional advice in setting my financial goals.

Stop wishing you could own a house or further your education. Fast track your financial dreams into reality by getting guidance from a financial advisor. Visit a financial institution that offers free advice and let the agent design a workable saving plan to show you how you can achieve your goals.

7.   I will pay off my credit card bills.

Get rid of the high interest rate debt that’s holding you back financially. Try to reorganize your debt with lower interest options like a credit union or cash-secured loan. Resolve that you will only use your credit card to pay for items that are in your budget. If you lack self control, cancel the cards or leave them at home.

8.   I will learn more about investing.

Increase your understanding of financial terms and investment opportunities. Many times, it is a lack of knowledge that prevents people from making profitable investments. Make it your business to read the weekly financial newspapers, and listen to the money programmes on radio and TV. Visit www.investopedia.com to get a free education on the wide variety of investments that are available.

9. I will create a ‘money magnet’ savings jar.

What we focus on will increase in our lives. Take a simple jar or plastic Ziploc bag and resolve to put money in there every single day of 2007. The amount you save is not important – it can be loose change, or even money you might find in the supermarket parking lot. It is the consistency of putting money aside daily that will help you to create more wealth in your life. Periodically put these savings into your long-term goal investment account.

10. I will be thankful for all the money I have now.

Very often, we focus on all the material things that wish we could buy, ‘if only’ we had enough money. What we have is never enough, and we feel discontented with our financial status. For 2007, let us all resolve to give thanks, every day, for all the possessions and non-material blessings that are currently in our lives.

Copyright © 2006 Cherryl Hanson Simpson. No reproduction without written consent.

DON’T MISS MY NEXT ARTICLE! CLICK BELOW TO RECEIVE IT IN YOUR EMAIL:

Subscribe to Financially S.M.A.R.T. by Email

Originally published in The Daily Observer,  December 28,  2006

Cherryl is a financial columnist, consultant and coach. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl