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Out With the Old, In With the New
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Kelly Rote (713) 394-3201 |
Release Date: January 3, 2006 |
The job market, consumer confidence and the price of gas are all finally looking up. Shouldn’t your personal finances and individual confidence also be on the rise? With the economy making a shift in the right direction, consumers should be more able to commit to new spending habits for the New Year.
While planning to join a gym, become more organized or committing to any of the other popular pledges, consider making new spending habits the top priority on your list of New Year’s resolutions. Statistics show that 37 percent of consumers generally don’t keep the resolutions they initially set. With this in mind, plan carefully, stay focused, and take advice from the experts at Money Management International (MMI) with these tips for creating and maintaining new spending habits in 2006:
Budget, budget, budget: The first step in creating a budget is determining what will work for you. Being realistic about expenses and your spending is key. Conduct research to learn what is considered a reasonable budget. For example, did you know that many experts advise that regular living expenses, including entertainment, home care and clothing, should all be accounted for with less than 26 percent of your regular income? Visit www.cnnmoney.com for more smart budgeting statistics.
Learn from last year’s financial blunders. If you found yourself in several unexpected tight spots in 2005, make a commitment to put extra money in a savings account reserved specifically for rainy days in 2006. Most financial advisors recommend having three months worth of living expenses set aside. If this seems like a lofty goal now, start small.
If it’s not broken, don’t try to fix it. Don’t purchase new items simply because they are on sale. If last year’s gadget does something similar to the new gadget you’ve been eyeing, just enjoy the one from last year. Try putting that money towards paying down debt, it will feel much better in the long run.
Become a smarter shopper: Take a step back before making even minor purchases, and consider if you really need it. It isn’t just big-ticket purchases that can break a budget. Also, try clipping coupons this year; just be sure to clip coupons for those items you need to buy anyway. Finally, always shop with needs and wants in mind and always have a spending plan.
“Although it may be hard to change spending habits initially, becoming debt free and building up a saving account will be beneficial for a lifetime,” said Cate Williams, vice president of financial literacy for Money Management International.
For more tips on how to create a budget that works for you, visit: www.moneymanagement.org.
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Money Management International, is a non-profit community service organization that provides confidential financial guidance, counseling and debt management assistance to consumers. MMI helps consumers trim their expenses, develop a workable budget, lower their debt payments and repay debts. Services are available by phone. To visit with an MMI counselor, call toll-free 1-800-762-2271- 24 hours a day, 7 days a week. Spanish speaking counselors are available. Consumers can also learn more by visiting the MMI home page at www.moneymanagement.org.
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