While 40% to 50% of us make New Year\u2019s resolutions on January 1\u2014a ritual that has existed since ancient times\u2014approximately 60% to 80% of us have already broken them by the end of February, according to researchers. <\/p>\n
It\u2019s still not too late, however, to reset the trajectory on your family\u2019s finances, experts note. <\/p>\n
1. Build a Budget <\/p>\n
If you haven\u2019t already done so, create a realistic budget. <\/p>\n
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. <\/p>\n
This leaves 15% for entertainment\u2014and something many consumers completely neglect: savings. <\/p>\n
2. Distinguish \u201cNeeds\u201d from \u201cWants\u201d <\/p>\n
Make sure you have a clear understanding of what you need in life versus what you want in life. <\/p>\n
You need to pay for the antibiotics when the doctor diagnoses a respiratory infection. You don\u2019t need to buy the latest movie released on DVD to aid in your recovery. <\/p>\n
You need to pay the rent or mortgage. You don\u2019t need to buy the lovely accent pillows that beckon to you from the interior design boutique. <\/p>\n
Always separate the needs from the wants\u2014particularly if money is tight. <\/p>\n
3. Monitor Your Spending <\/p>\n
To see what you really spend each month, keep a running log of all purchases\u2014no matter how small\u2014for a full month. This will give you a visual display of where your money goes after you deposit your paycheck. <\/p>\n
You may find that the $3 cup of coffee that starts each day adds up to $90 a month\u2014a 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. <\/p>\n
4. Create an Emergency Fund <\/p>\n
Life is full of surprises\u2014both 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. <\/p>\n
\u201cIn most cases, consumers who find themselves dealing with a financial hardship are unprepared and have not saved for unexpected situations,\u201d 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. <\/p>\n
5. Educate Yourself <\/p>\n
When you attended high school or college, you studied history, mathematics, language and science, but there was probably no course in basic money management. <\/p>\n
If you need help in meeting a financial goal\u2014whether it\u2019s buying a home or reducing your debt\u2014take advantage of community resources. <\/p>\n
\u201cConsumers 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,\u201d Giarratano says. <\/p>\n
6. Don\u2019t Become a Victim <\/p>\n
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. <\/p>\n
\u201cIdentity theft is often an inside job,\u201d warns Robert L. Siciliano, a personal security expert with Boston, Massachusetts-based SafetyMinute Seminars and author of \u201cThe Safety Minute.\u201d <\/p>\n
\u201cLower-level help desk workers and frontline call center employees often have access to all our personal information in their databases,\u201d he says. \u201cWhat are you doing to protect yourself? If you\u2019re not paying attention, you could be a victim, too.\u201d <\/p>\n
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\u2019 misfortune. <\/p>\n
\u201cAvoid using your credit card to make contributions,\u201d advises James Walsh, author of \u201cYou Can\u2019t Cheat An Honest Man: How Ponzi Schemes and Pyramid Frauds Work\u2026and Why They\u2019re More Common Than Ever.\u201d <\/p>\n
\u201cEven though this can be a convenient way to proceed, many crooks are looking for credit card numbers,\u201d Walsh says. \u201cThey will press strongly for \u2018immediate support.\u2019 Don\u2019t rush.\u201d <\/p>\n
Instead, initiate the call yourself, and select a reputable charity. <\/p>\n
\u201cGo with recognized names,\u201d Walsh says. \u201cNo organization is perfect; even the best-meaning groups occasionally misallocate money or fall victim to abusive employees. But larger charitable groups\u2014like the Red Cross, the United Way and Catholic Charities\u2014have the mechanisms in place to audit their people and performance.\u201d <\/p>\n
Charitable contributions are tax-deductible, so keep good records of all donations\u2014including small cash gifts.<\/p>\n","protected":false},"excerpt":{"rendered":"
While 40% to 50% of us make New Year\u2019s resolutions on January 1\u2014a ritual that has existed since ancient times\u2014approximately 60% to 80% of us have already broken them by the end of February, according to researchers. It\u2019s still not too late, however, to reset the trajectory on your family\u2019s finances, experts note. 1. Build…<\/p>\n
Read More “A Fresh Start for Family Finances”<\/span> »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-207","post","type-post","status-publish","format-standard","hentry","category-finance-tips"],"featured_image_src":"","featured_image_src_square":false,"author_info":{"display_name":"azmansulaiman","author_link":"https:\/\/azman.cyou\/blog\/author\/azmansulaiman\/"},"rbea_author_info":{"display_name":"azmansulaiman","author_link":"https:\/\/azman.cyou\/blog\/author\/azmansulaiman\/"},"rbea_excerpt_info":"While 40% to 50% of us make New Year\u2019s resolutions on January 1\u2014a ritual that has existed since ancient times\u2014approximately 60% to 80% of us have already broken them by the end of February, according to researchers. It\u2019s still not too late, however, to reset the trajectory on your family\u2019s finances, experts note. 1. Build... Read More “A Fresh Start for Family Finances”<\/span> »<\/a><\/p>","category_list":"finance tips<\/a>","comments_num":"0 comments","_links":{"self":[{"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/posts\/207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/comments?post=207"}],"version-history":[{"count":0,"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/posts\/207\/revisions"}],"wp:attachment":[{"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/media?parent=207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/categories?post=207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/azman.cyou\/blog\/wp-json\/wp\/v2\/tags?post=207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}