A Fresh Start for Family Finances in 2005

While 40% to 50% of us make New Year's resolutions on January 1-a ritual that has existed since ancient times-approximately 60% to 80% of us have already broken them by the end of February, according to researchers.

It's still not too late, however, to reset the trajectory on your family's finances, experts note.

1. Build a Budget

If you haven't already done so, create a realistic budget.

Approximately 85% of your income should be set aside for necessities like housing, food, health care and clothing, according to the professionals at VISA USA.

This leaves 15% for entertainment-and something many consumers completely neglect: savings.

2. Distinguish "Needs" from "Wants"

Make sure you have a clear understanding of what you need in life versus what you want in life.

You need to pay for the antibiotics when the doctor diagnoses a respiratory infection. You don't need to buy the latest movie released on DVD to aid in your recovery.

You need to pay the rent or mortgage. You don't need to buy the lovely accent pillows that beckon to you from the interior design boutique.

Always separate the needs from the wants-particularly if money is tight.

3. Monitor Your Spending

To see what you really spend each month, keep a running log of all purchases-no matter how small-for a full month. This will give you a visual display of where your money goes after you deposit your paycheck.

You may find that the $3 cup of coffee that starts each day adds up to $90 a month-a pocketbook pincher that may prompt you to buy a pound of coffee beans at the local market and grind them yourself. That $90 blossoms into $1,080 in savings at the end of a year.

4. Create an Emergency Fund

Life is full of surprises-both positive and negative. If you happen to lose your job or suffer an illness that temporarily sidelines you, you will need cash reserves to support you during the rough months.

"In most cases, consumers who find themselves dealing with a financial hardship are unprepared and have not saved for unexpected situations," says Diane Giarratano, director of education for Novadebt, a U.S. financial management service agency, with multiple locations, that provides credit counseling, budgeting and financial education.

5. Educate Yourself

When you attended high school or college, you studied history, mathematics, language and science, but there was probably no course in basic money management.

If you need help in meeting a financial goal-whether it's buying a home or reducing your debt-take advantage of community resources.

"Consumers should feel free to contact a good credit-counseling agency to obtain free advice with regard to establishing a budget or to learn how to handle unexpected hardships," Giarratano says.

6. Don't Become a Victim

Identity theft has become an international epidemic, so be extremely cautious when giving out your credit card or personal identifying information. Monitor your credit card bills carefully for unauthorized charges, and immediately report suspicious activity to the issuing company.

"Identity theft is often an inside job," warns Robert L. Siciliano, a personal security expert with Boston, Massachusetts-based SafetyMinute Seminars and author of "The Safety Minute."

"Lower-level help desk workers and frontline call center employees often have access to all our personal information in their databases," he says. "What are you doing to protect yourself? If you're not paying attention, you could be a victim, too."

And when a disaster strikes, such as the recent killer tsunamis in South Asia and East Africa, be wary of scammers from fake charities before reaching for your checkbook. Unfortunately, there will always be unscrupulous individuals who seize such opportunities to profit from others' misfortune.

"Avoid using your credit card to make contributions," advises James Walsh, author of "You Can't Cheat An Honest Man: How Ponzi Schemes and Pyramid Frauds Work?and Why They're More Common Than Ever."

"Even though this can be a convenient way to proceed, many crooks are looking for credit card numbers," Walsh says. "They will press strongly for 'immediate support.' Don't rush."

Instead, initiate the call yourself, and select a reputable charity.

"Go with recognized names," Walsh says. "No organization is perfect; even the best-meaning groups occasionally misallocate money or fall victim to abusive employees. But larger charitable groups-like the Red Cross, the United Way and Catholic Charities-have the mechanisms in place to audit their people and performance."

Charitable contributions are tax-deductible, so keep good records of all donations-including small cash gifts.

---------

Fox Symes assists all Australians discover the truth about their debts and how they can rapidly reduce them. There are methods available to the Australian public and you can discover how to use these to assist you in reducing your debt with a free phone consultation from Fox Symes. Visit http://www.foxsymes.com.au or contact them directly on 1300 361 204.

---

Portfolio Planning can Lead to Irreconcilable Differences

The judge had to ask the question, and we had... Read More

Developing a budget? Watch out for Those Budget-Bursting Gremlins

If you've developed a household budget to get your spending... Read More

Accessing Funds You Never Knew You Had- Household Utilities and Mortgage Expense Reduction Plan

For most of us the process of getting out of... Read More

Kundalini Lessons - Money

I've been going through and interesting growth period lately that... Read More

Financial Fitness - Are You Exercising the Right Muscles to become Financially Fit?

Are your financial muscles well toned and healthy or flabby... Read More

Learning the Basics of Handling Money

With prices increasing all the time, saving money can be... Read More

Avoiding A Nightmare On Renovation Street

You've decided you want a bigger, better and more desirable... Read More

Succession Planning

Have you ever thought about what you are going to... Read More

Financial Security

1) HOW TO LOOK FOR A JOBA) The Chronological Curriculum:1.... Read More

Saving Money - The Magic 20 Percent

Saving money is not easy and is made more difficult... Read More

Vesting and Your 401(k)

Do you have a 401(k) retirement account? Are you vested... Read More

7 Simple Ways To Save Money

Each of us knows how to spend money, but do... Read More

Budgeting Before Buying

With interest rates being at an all-time low, I can... Read More

Improve Your Professional Image Using Address Labels

One of the simplest ways to improve your professional image... Read More

Should You Borrow From Your 401(k) Account?

If you have a 401(k) account, it can be very... Read More

How to Choose Wisely a Credit Card

So, you've made the decision to apply for a credit... Read More

The Joys of Address Labels

Address labels are many things to many different people. If... Read More

Is There A Retirement Crisis?

When people speak about the increasing age expectancies, they generally... Read More

How to Save for A Down Payment

Saving for a Down Payment is hard work, so it's... Read More

Understanding Your Finances Can Give You Power And Choice

What is finance and what do you need to know?... Read More

UK Parents Inactivity Harming Their Children?s Future University and Mortgage Savings

The British government at the beginning of this year officially... Read More

Knowing Me, Knowing You: Why ID Protection Plans Are Flawed For Fraud

ID theft is a major consumer concern, though there is... Read More

What is ChexSystems?

Commonly referred to as the first of the three major... Read More

Money Matters: Strengthen Your Marriage by Putting Finances in Order

Did you know that 43% of all married couples argue... Read More

The Wonderful World Of Address Labels

Ever wonder where address labels come from? Avery® is perhaps... Read More

When do You Need a Financial Management Company on Your Side?

We live in a crazy world. Someone ought to sell... Read More

Tips To Save Money At The Supermarket

Are you interested in saving money off your grocery bills?... Read More

Ways to Save Energy and Slash Electricity Bills

1. Lighting & Light Bulbs Install low energy light... Read More

How To Get Ahead On A Low Income

Do you struggle from week to week trying to make... Read More

Single Mother Resources Directs You Towards Success

As a parent you are bound to face a few... Read More

Debt Management ? Watch Out for Bank Fees!

During the last twenty years, banks have offered a number... Read More

Save Money on your Clothing Budget. Tame the Closet Monster!

Reducing the clothing budget was a serious challenge for me.... Read More

Budgeting Your Way to Financial Freedom

Financial freedom cannot be achieved without budgeting. Budgeting involves tracking... Read More