If you want to keep your New Year's resolution to get your financial life in order, you have to have a plan, not just a promise. Here is some advice from Money Management International, a consumer credit counseling agency, on how to stick to your financial New Year's resolution:
-Be specific and realistic. Don't just promise to save more. Have a goal. Start with calculating how much it costs to run your household on a monthly basis and then multiply that by three. You should strive to have at least three months of living expenses in an emergency fund.
-Write it down. You may even want to post your goals where they can be seen every day.
-Develop a strategy. If your target is to save $2,500 for the year, plan to put away $50 a week. This will help you create a realistic budget that you can stick to.
-Make a budget. This is a key part of meeting your New Year's resolution. Track your expenses for a month to identity areas where you can cut back.
-Don't give up. “Once you have decided what you want to accomplish, be confident,'' said Cate Williams, vice president of financial literacy for MMI. Remember, a little discipline can help you enjoy a happy and prosperous New Year.''
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Here are some online resources to get you started:
-To begin to straighten out your financial life you have to assess the damage. That means getting a copy of your credit report. You are entitled to one free credit report once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. The only official site to get a free credit report from all three major credit bureaus is www.annualcreditreport.com. There are a lot of imposter sites so be very careful. You can also request your reports by calling toll-free (877) 322-8228. You will go through a verification process and reports are mailed within 15 days
-America Saves (www.americasaves.org ) is a nationwide campaign involving more than 1,000 nonprofit groups, employers, financial institutions, and government agencies. The Web site has a Personal Wealth Estimator and information about how to save, including a free brochure, “Build Wealth, Not Debt.'' The brochure is available in English and Spanish.
-If your debt is too heavy and you don't know what to do, contact the National Foundation for Credit Counseling (www.debtadvice.org). Consumer Credit Counseling Service counselors can work with you to develop a budget, figure out your options, and negotiate with creditors to repay your debts. You can also call (800) 388-2227 to locate the office nearest you.
-For online calculators that can help you meet a savings goal, such as buying a home, go to www.bankrate.com.
