Have you started thinking about New Years Resolutions? After the excesses of the holiday season,   most of us like to think that we’ll be healthier, wealthier and wiser as the new year dawns. Quitting smoking, eating better, becoming more organized…all worthy goals, but what about improving your money management skills? Consider the following common sense tips:

1. Plan for major purchases and periodic expenses.

2. Determine short, mid and long term financial goals.

3. Keep track of monthly living expenses and debt payments.

4. Develop a realistic budget. Draft a monthly saving and spending plan and stick to it.

5. Don’t let expenses exceed income. Don’t charge more every month than you are repaying to creditors. Try to pay more than just the minimum balance on your charge cards.

6. Save. Set aside money each payday for upcoming expenses, plus 10% of your take-home pay. Accumulate 3-6 months’ salary in an emergency fund.

7. Pay your bills on time. It will help maintain a solid credit rating. If you can’t pay your bills, contact creditors and explain your situation.

8. Distinguish between needs and wants and save the wants until you have paid for the needs.

9. Use credit wisely for safety, convenience and planned purchases-not to pay other debts. Determine in advance how much you can comfortably afford to buy on credit. Find out the interest rates on your debts.

10. Keep track of daily expenses so you know exactly where your money goes.

Budgeting need not be complicated. Find a financial tracking system that suits your lifestyle and exercise some self-discipline when spending. For a complete financial assessment, Family Service Thames Valley (Credit Counselling Program) is an excellent resource. We are a not-for-profit organization and we offer the following services:

Please contact our London office at 519-433-0159 extension #151 to schedule an appointment. We offer service in London and Glencoe, as well as other locations in Middlesex, Elgin and Oxford counties.