The Finish Line

By: Komal Bhojwani

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December 28, 2005

We’re not big on resolutions. They’re usually the same year after year—lose weight, quit smoking, stop world hunger—just another chance to trip up.

A resolution is about enforcing your will—I WILL skip dessert, I WILL save money, I will kick my scented candle habit—regardless of your motivation.

A goal, on the other hand, is like peering into a crystal ball and seeing the future: yours. A goal envisions the end result, and that’s what gets you to the finish line.

We have our list of 100 goals for 2006, and we encourage you to do the same. It’s amazing how much gets done when you have a list to work from. To help you get started, here’s a list of 10 financial goals for 2006:

1. Count your cash.

Money is your friend. And like any good friend, she needs respect and a little attention. Keep your wallet tidy and spend a little time with your accounts every week. Before long, you’ll have a pretty good relationship with your money.

2. Count your blessings.

Once a day, make a list (in your head, on paper, to your best friend) of 5 things you’re grateful for. It’s a counterpoint to counting cash, and reminds you of all the things you don't need to shop for.

3. Take charge.

Carrying a balance on your credit cards? Make this the year you start saving for YOURSELF instead of putting the bankers’ children through school. (You can bet the tuition is Ivy League.)

If you must carry a balance, transfer it to a lower interest card. We like the Chase Platinum Visa® Card: 0% APR for balance transfers and purchases for 12 months (regular APR is 14.24%), no annual fee and other goodies. The catch? You need decent credit to qualify. Apply online.

And if you’re already drowning in debt, DON’T get another credit card. Click here instead for helpful information on how to find a reputable credit counseling service.

4. Peak your interest.

Make sure your money’s working for you. Keep long-term savings (retirement, college and anything you won’t touch for at least 5 years) in stocks, bonds and real estate.

Emergency funds and short-term savings should be more readily available. Online banks usually pay the highest rates because they have lower costs. We like ING Direct, where you can open a savings account in under five minutes with no fees, no minimums and FDIC insurance.

5. Know the score.

Your credit score is what lenders (and some insurance companies!) use when they decide how much to charge you. Suits of all stripes look at that number so you should keep tabs on it, especially if you’re planning to refinance, buy a house, or lease a car in 2006.

You can get free credit reports once a year from the website maintained by the three credit reporting agencies. If you’d prefer to have a translation in plain English of how those numbers are calculated and what to do about mistakes, MyFICO will help you understand how credit scoring works.

6. Cover yourself.

If you’re responsible for a mortgage, kids, or both, make sure they’re protected if something happens to you. Hopefully, your family won’t need to collect on your life insurance policy but it’s better to have it and not need it than the other way around. Shop and compare multiple life insurance quotes for free.

7. Got Will?

Wills aren’t just for rich people. If you’ve got young children, a Will is absolutely critical. And if you’ve got assets (equity in a house, a car that’s been paid off, a savings account, a 401(k), jewelry, anything of value), wouldn’t it be nice if YOU decided where they end up? Checking out without a Will means some judge you never met decides who gets to raise your kids. That sister-in-law you despise may end up with your children and your hard-earned money to cover the cost.

You can prepare a Will online at LegalZoom, which was created by top attorneys to save you time and money. If you put MoneyPants in the promo code box, you’ll get a 5% discount.

8. Become a record producer.

Do you really want to be scrambling for receipts in April, trying to remember what you spent on gas, dry-cleaning, meals, and all those other expenses that add up to lower your taxes? Start tracking your expenses come January 1. There are lots of ways to do this, but online software is one of the easiest. You can join MoneyPants now at a special holiday price of $79 for the entire year, a 30% savings off the regular monthly fee.

9. Show you the money.

You make money, you spend money, you have no idea where it goes. Make this the year you plug your money leak. Create a spending plan. That’s where YOU tell your money where it goes instead of the other way around. What a novel concept! And pardon us for boasting, but the MoneyPants software CashTrack does it beautifully.

10. Take a time out.

Don’t forget, in the middle of the madness, to breathe. Of all the goals, taking care of yourself is the most important. Schedule it. Make a date with yourself. Keep it. And repeat every week, without fail.

Happy New Year and may all your dreams come true.

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MP

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