I will get my finances into better shape next year

It’s a new year, a new decade and a new chance to make significant life changes says Elida Doiron, Zachary Branch Manager for E Federal Credit Union.   As the result of recent economic issues, many people are making their finances their top priority in 2010.

According to a national TD Ameritrade survey, 75 % of Americans will make at least one financial-related New Year’s Resolution in 2010. As with most New Year’s resolutions, however, setting them and keeping them are two different issues.

This year, if you are serious (or even semi-serious) about improving your financial outlook, here are a few tips to get you started and keep you motivated.

1.    Make a plan NOW – There is a popular quote: “Those who fail to plan, plan to fail.” Most resolutions are short lived, not because the will or desire is not there, but because there’s no clear plan to achieve the goal. Schedule an hour on Sunday afternoon to jot down a simple action plan. Ask yourself: What financial areas need to be addressed? What steps should I take to get there? What costs can I cut out of my weekly and monthly budget? It is often the first step that is the hardest to complete.

2.    Be Specific with Your Goals - Too often, we set broad, unrealistic, “pie-in-the-sky” goals that we soon become discouraged with and fall short of reaching. Setting achievable goals is important to your success ratio.   If your goal is reducing debt, aim to pay off one of your credit cards. If your goal is saving money, calculate exactly how much you can reasonably save each week and set your three, six and nine-month goals.   The more detailed the goal, the more you will be able to stay focused on it.

3.Automate Your Savings - One of the hardest things to do when trying to save money is remembering to move funds to your savings account. Consider setting up automatic electronic transfers to your credit union savings account on your paydays. You’ll be surprised how painless it is to save this way and how quickly your savings will grow.   Online bill pay services are also effective and can help you eliminate costly late fees. And many financial institutions, including E Federal, offer electronic transfers and bill pay services free of charge.

4.   Make it a Fun Family Affair - Saving money and reducing debt requires sacrifices. And sacrificing those things you enjoy can sometimes be uncomfortable. To keep you and your family motivated, find ways to make the process fun. Simple things like encouraging your kids to keep a clear piggy bank to watch their savings grow, hosting a weekly “family game night” instead of dining out or having “family day at the park” instead of a day at the mall can keep you on target.   Choose fun family activities that are both entertaining AND help you save money.

5.   Little cuts go a long way - Many people think they have to make major lifestyle changes in order to save money. In reality, a few simple daily choices can make a real difference. Consider switching from soda to homemade lemonade or water with meals.    Drinking coffee at work instead of at the local coffee house, or even walking your neighborhood instead of costly gym memberships are small changes that can add thousands of dollars to your savings account over time.  

In the end, the most important thing to remember is to stay focused. Slow, steady and committed wins the financial race. Whether you set encouraging reminders in your phone or day planner or reward yourself when reaching milestones, you have to stay motivated to succeed.

A little discipline and work can lead to a happy and prosperous New Year. And if you need a little boost to get started on your savings plan, you can get help with increasing your total net worth by visiting www.efedcu.org