10 Financial Resolutions to Make for 2010

It's that time of year again--time to take stock of all the little things that you need to change and hopefully stick with a plan that lasts past January 2nd. Better to look at this as a time of renewal, rather than obsessing about all the things you do wrong.  You're much less likely to make these changes if you focus on the negative, rather than the positive.  So focus on: I will be better, rather than, I've been terrible. 

Just keep in mind that you're not alone.  Financial resolutions top the list for most everybody, along with improving physical health.  Check out the top ten resolutions from USA.gov.  Managing debt and saving money top the list.  If you've got a lot of money, you've got more to manage.  If you're struggling, you need to find ways to save.  Whatever your situation, right now is a great time to figure out how you can make 2010 be the year of some personal economic recovery.

10 Financial Resolutions

1. Cut out small purchases.  If not cut them out, at least understand how rapidly they can build up. A $2.50 cup of coffee might not seem like a lot in one go, but over time? These small impulse buys should be as much of a concern as big purchases.

2. Pay off high interest debt.  Also known as: pay off your credit cards, the highest-interest debt you have. This means transferring it to a 0% APR balance transfer card and not using that card for anything but debt repayment.  Even if you only pay off a fraction of your overall debt (you can generally only transfer $4000 at a time) this can save you money in the long run.

3. Stop paying with credit.  By the same token, cut down on credit spending overall. Even if you're saving money by seeking out sales and discounts, this can be off-set by interest. Only buy what you can afford outright.

4. Check your credit report. Don't think identity theft problems only happen to other people. It might not even be a case of theft, but just a mistake where someone else's credit difficulties show up on your report.  Been known to happen.  You get one free a year, so use it.

5. Never pay full price. If you do need to make a purchase, don't buy it at the first store you see.  Go online and see what kind of discounts you can get, even if it means getting sent from somewhere far away.  After all, online discounts are why Savings.com exists.

6.  When investing, be patient.  The market is volatile right now.  If you lost a bundle recently, you're likely to be a bit panicked about earning it back, but panicked investing can just increase your financial problems. You have to think of the long-term--even for once-stable investments, as the markets level out again.  If you do put money into a potentially quick-gaining stock, diversify with stable investments, so you don't lose everything in one go.

7.  Find a way to make extra income.  A second income doesn't necessarily mean a back-breaking second job. Look to the web to make some extra pocket cash.  Tip: Google ads on a website can be effective.  Creating a website about a subject that interests you is a start.  Best thing about a web-based business is it keeps working even when you're not.

8. Revisit your insurance plans.  Are there better, cheaper plans out there?  Are you paying for insurance you don't need--like life insurance if you don't have dependents?  Get some help with this, as understanding the fine print on insurance forms can take a pro.

9. Stick to a budget. Saving money isn't all about cutting the fun out of your life.  You can still do #1 if you know that you can fall within budget.  Problems arise when you don't know how that purchase is impacting your overall financial game plan.

10. Finally, be realistic.  Saying, "In 2010, I will be a millionaire" or "I will be debt free" are not quite realistic goals, most of the time.  So long as you set realistic milestones and stick to a game plan, you can be a success.  The idea is to be better off than you are right now, not having every problem magically solved.  With finances, slow and steady can be effective.

How about you?  Got any special financial resolutions for the new year?  Let us know in the comments.