2012 Financial Resolutions

Make 2012 the year of financial goals. Here are a few tips to get you started on the path to financial freedom in the New Year.

Know What You Want

Have a clear, concise financial goal for the year. Take a broad goal such as, “I want to have my credit card paid down and more money in savings” and make it more specific, “I want the balance on my credit card paid down to $0 and have over $5,000 in my savings account" and make sure you choose a date to complete the goal. This will help you become accountable and more likely to reach your goal.

Document your expenses

It’s good to know about how much you spend in a month. This doesn’t have to be down to the penny but understanding your fixed monthly costs such as a mortgage, rent or insurance payment will help you realize how much you have to spend on other things and how much you can afford to save. We have a great budget worksheet on our web branch. Follow this link http://www.heritagecu.org/assets/docs/Budget%20Template.xls

Prioritize Your Debts

Not all debt is created equal. Make a list of your liabilities and organize them by the annual interest rate. Those with the highest rates should be made a priority and paid off first. Another good way to pay off debt is to pay the smaller amounts off first. Then you can take the money you were using on those debts and add them to the higher interest rate debts. If you want some advice on how to pay off your debt or even consolidate it, contact Heritage.

Open an IRA

It's never too late, or too early, to put together a retirement plan. You may already contribute to a 401k plan, a Roth or traditional IRA, but you need to look at all of your investments and savings to see the big picture. Adjust your contribution to match you future goals. Also, many companies match up to a certain amount of your contribution. Check with your human resources department to see if you can take advantage of this offer. You don’t want to leave money on the table!

Get into the habit of saving money

They say it takes 30 days to establish a habit. Start with small amounts if you need to, because every little bit helps, and have a percentage of your paycheck directly deposited into a savings account. This way, you are forced to save because the cash is drawn directly from your bank before you can get your hands on it.

Give yourself a raise

If you are starting the New Year off with a raise in your salary, take a percentage and add it to your 401K or savings account. You will never miss the money!