By Stephen Dawkins
Another year has come and gone. As a new year begins, it can be a time to think about what we would like to be different about our lives.
For some people a change that needs to be made relates to their financial situation.
Since folks usually hold little control over giving themselves a raise, winning the lottery or finding some other life-changing source of revenue, financial New Year’s resolutions focus on managing the money that we already have.
“People always have the intention of saving money, but sometimes that gets pushed to the back of our minds,” said Darren Wilson, president of Peachtree Bank. “New Year’s is always a good time to start a budget, figure out where your money is going and make changes that need to be made so that you’re in better shape this year than you were the year before.”
Though Wilson said any time of the year is as good as any other when it comes to getting one’s finances in order, he encouraged those making a New Year’s resolution to be in better shape financially to review their long-term financial goals and make adjustments to savings based on those goals.
People should also develop a plan to reduce debt. Even if you don’t expect to borrow money during the coming year, it’s always a good idea to know your credit score, and a free score can be obtained once a year from www.annualcreditreport.com, Wilson said.
And while you’re digging through those financial records, you might as well begin organizing information for the filing of income taxes.
Saving for retirement
There’s nothing wrong with piling up cash in a savings account–or under the mattress–but those who are interested in investing as a way of providing for a retirement don’t have to go it alone.
Renee Green with Edward Jones Investments said she can help people plan for the future.
“Some people just try to do this themselves, but it’s my full-time job and my company provides me with tools that not everybody has,” Green said.
401(k) programs are a common way to invest for retirement. Many employers offer the programs, but if not, they can also be accessed through outside companies, including Edward Jones.
Green said some people think investing requires more money than they have available.
“You don’t have to have a lot of money,” she said. “We can do as little as $25 a month. The idea is to get started.”
And what better time to get started than the beginning of a new year?
“New Year’s is a time to get everything in order for the next year,” Green said.