New Year Financial Resolutions
By Ignacio R. Bunye
January 30, 2012
It is almost the end of January—and only eleven more months until we make a new set of New Year’s Resolutions. How time flies indeed!
So have you made your own list of “financial” resolutions yet? If you haven’t, you still have time to do so.
The Financial Consumer Affairs Group (FCAG) of the Bangko Sentral ng Pilipinas, in its weekly e-newsletter Weekly Wealth Watch, has come up with these financial tips.
If you feel that you are groping your way out of a financial mess, or are simply clueless on how to start steering your finances back on track this year, the very first thing you need to do is assess your financial situation.
* Examine your bank statements for the past year and ask yourself what it says about you. Are you someone who jumps at every end-of-the-month sale opportunity and buys things you already have, thinking you have made a good bargain? Think again, says FCAG.
Know what you want and how to get there. Make a personal financial statement similar to that of a company’s mission statement. Set very specific goals and concrete steps on how to go about achieving your targets.
* For example, if you want to build savings of at least R20,000 this year, you can take baby steps and commit ten percent of your monthly income automatically to savings.]
* You can also learn about investing.
– Start educating yourself on matters of personal finance.
– Read a financial management book or two.
– Shop around for financial products that best fit your risk tolerance and objectives.
– Keep yourself updated on trends.
Another worthy goal, according to the FCAG, is to make paying off debts a top priority in 2012.
* You may prioritize paying either high-interest debts or the smallest balances first, then move sequentially down the line.
* Wiping out your debts quickly not only helps you steer clear of piling interest charges, but also helps to protect your credit score.
FCAG advises further: Spend less than you earn. Try making a budget.
* A budget is a tool for tracking income and expenses.
* With a budget, you can prioritize spending for the more important things and adjust your lifestyle accordingly to minimize wasteful spending.
Final FCAG advice: Safeguard your hard-earned money by shielding yourself against identity theft. Always be vigilant against high-tech fraudsters.
You may e-mail us at totingbunye2000@gmail.com. Past articles may be viewed at http://speakingout.ph/speakingout.php.
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