31 December 2007 One Comment Print This Post  Email This Post

Many of us read and hear about different personal finance theories and strategies, and some of us even talk about a lot, but there’s a big difference between knowing and doing. Theres no better time than the new year to wipe the slate clean and start off on track. This new years, my resolution is to build a solid to-do list. The actual to-do items are not part of the resolution. The resolution is to simply build the list. Much like a business plan, a good to-do list is like a blue print for a house. If you don’t know what and when to do it, the finished product will be a disaster. Join me in creating a solid to-do list for the new year. Here’s eight things you may want to consider for your list.

1. Tackle debt. First quarter is debt season. Those gifts put a smile on many faces, including credit card companies. Set a realistic plan to get rid of your debt by either aggressively paying off high interest debt first or using a snowball effect and paying off smaller balances first.

2. Get organized. If you’ve been handling your finances passively, it’s time to see the big picture. Try out software like Microsoft Money or Quicken. If that doesn’t interest you, at least sign up for online banking through your bank so you get close to real time tracking of all your expenses.

3. Get better deals. The new year is a great time to make sure you’re getting the best deal on all the services you pay for. Shop around for better deals on cell phone service, landline service, cable TV, internet, pool service, anything. Make those phone calls and switch providers if necessary. Get it done all in a day.

4. Move your money. While we’re talking about banking, open an e-savings account if you haven’t already. If you’re still keeping a large amount of money at a brick and mortar bank, earning 1% or less, you’re getting robbed. Check out bankrate.com for the latest information regarding rates.

5. Contribute to your retirement account. Plan to invest a portion of your income into your retirement account. Don’t worry about the stock market volatility as you won’t be touching that money for decades. If you don’t already have a retirement account, open one now. You can open roth IRAs online through companies like etrade.

6. Plan for taxes. Taxes are inevitable. Plan ahead and start saving up to pay your income taxes, property taxes etc. so you won’t be shocked when the bill arrives.

7. Start an online business. I am a big advocate of e-commerce and online based businesses. The overhead and startup costs are relatively low, and you have the potential to build a great secondary stream of income. Read my articles on finding dropshippers and finding a solution for your e-commerce business.

8. Learn something new. Round up those articles and books that you’ve been meaning to read and open up that front cover. Keep checking back on our website and the other great personal finance sites out there. Don’t stop learning.

Plan your 2008 to do list carefully and fill it with realistic goals and milestones. Make the necessary changes and sacrifices to reach those goals. I wish you all a healthy and prosperous 2008 and I hope you’ll stick around to read more of our articles. Thanks for reading.

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