Make Money Matters a New Year’s Resolution

Make a resolution to organize your financial life this year.

Many people resolve to be more financially savvy at the start of the New Year. But how do you do it? These days everything is more expensive, and carefully monitoring income and expenses is key. Perhaps you want to learn how to make your money go further, but don’t know who to trust or how to get started. According to Mary Caraccioli, financial expert and host of “Money Matters Today” on CN8, The Comcast Network, the first step to improving your financial situation is as easy as getting organized.

Caraccioli offers the following 10 easy tips to make New Year’s financial resolutions a reality:

1) Buy a label maker and 20 manila folders: Start organizing with something that has been piling up, maybe those dreaded credit card statements. As you put your statements into one folder, examine spending habits. Before you know it, you will have a better understanding of your financial situation and a stack of well organized, easy-to-find financial files.

2) Prioritize your new folders: Take 15 minutes to stack your new folders in order of significance. Whether you want to refinance a mortgage or pay down debt, move the most important folders to the top of the pile.

3) Call a family meeting, even if you are single: Talking about money is crucial to financial success. Bring everyone to the meeting who is part of your financial life — your spouse, children, parents or partner. Discuss the folders and important financial issues such as college funds or retirement planning. Money is not a taboo subject and managing it requires open dialogue and input.

4) Set goals: After the family meeting, write out new financial goals. For example, if you want to do a better job living within your income level, make a plan on how to do that — from clipping coupons to saving a little more each week from your pay check. Write out your goals so you can review them throughout the year.

5) Divvy up the duties : Involve family members. Find out who is willing to take responsibility for various financial tasks. Even children can participate, with easy jobs such as reminding the rest of the family to watch the thermostat to save on the utility bill. This will empower everyone and take some of the burden off the main money manager.

6) Think back and think ahead: Taking a few minutes to consider what life changes you experienced last year and what you expect in the coming year can help you make better decisions. If you know a child will be starting high school or the lease will expire on the car, consider how these changes will impact spending or investment habits. The start of high school is a great time to re-examine your child’s college fund, and last year’s job promotion could enable you to increase your 401k contribution.

7) Get out the checkbook and last month’s credit card statements: This is a quick way to get a rough idea of what you spend monthly. There are certain things like mortgage and car payments that are consistent, but pay attention to the other expenses, like dinner outings, shopping trips and doctors visits. This can help provide an important reality check about your spending habits.

8) Where is your stuff: You spent the time to organize all your important financial documents in the manila folders, now make sure someone knows where they are stored in case of an emergency. This should include your will, medical proxy and account information.

9) Give 10 minutes a week: If you dedicate just 10 minutes a week to review one aspect of your financial life, you will be more organized by the end of the year. You may also start making better choices for yourself and your family.

10) Invest in yourself: There are two major things that can prevent you from saving money: an accident or illness. Protect yourself by adding long-term disability insurance to your portfolio and make sure your regular healthcare coverage suits your current lifestyle. Health is your most important asset — protect it with passion.

For more advice on how to achieve your financial resolutions and answers to all your financial questions, tune in to “Money Matters Today,” Monday through Thursday at 8 p.m. on CN8, The Comcast Network. CN8 is one of the nation’s largest, most honored regional 24-hour diversified television networks, serving 7.1 million viewers throughout the Northeast. Viewers can get more information or watch the show on CN8’s Website at www.cn8.tv. (MS)