Resolution Solution Part 2

It’s that time of year…resolution declarations! While helping you lose weight or stopping your cigarette habit is out of my control, I can help with the ubiquitous, “get my financial life in order!” Yesterday we started by writing down three main goals that you hope to tackle throughout the year, but someone wrote me and said that she had too many and did not know where to start. To help, here are some resolutions that I came up with on last Saturday’s New Year’s edition of the “Making Money” show. Maybe a few of these will resonate with you.

Pay off consumer debt (credit cards, auto loans)
Establish an Emergency Reserve Fund (generally, 3-6 months of living expenses)
Maximize your retirement contributions
Diversify your portfolio holdings across a variety of asset classes
If you are 40-60, calculate your retirement numbers

The next step is to carve out the time necessary to keep track of your progress. Maybe that means that while you are watching football throughout the month, you make sure to review where you are and what you need to do. (We use a proprietary “Financial Check Up” to help keep folks on track.) Or maybe each month when you pay the bills, you remind yourself to check on the investment allocation of your retirement account. Establishing a routine or regular time to address your milestones is an important part of the process. Regardless of when you do it, it is important to make the time you need to track your goals.

If you start the process and feel like you are stalling, that may mean that you need some help. You don't have to be the only one on which the achievement of your resolutions depends. You may want to ask a friend or family member to provide guidance, or perhaps you might turn to a professional like a CFP® or a credit counseling service if debt is your big issue. Seeking assistance is far better than letting the resolution wither away, only to be back on the list next year.

Finally, don’t forget to be kind to yourself during the process. No one is perfect, so it's unreasonable to think that you won't make a mistake or fall back into old patterns temporarily. When you do, don't be too hard on yourself and don't give up. One misstep isn't the end of the world (or the end of your resolution). Keep at it and you are likely to be rewarded both monetarily and emotionally.