A Fresh Start for Family Finances in 2005

While 40% to 50% of us make New Year's resolutions on January 1-a ritual that has existed since ancient times-approximately 60% to 80% of us have already broken them by the end of February, according to researchers.

It's still not too late, however, to reset the trajectory on your family's finances, experts note.

1. Build a Budget

If you haven't already done so, create a realistic budget.

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.

This leaves 15% for entertainment-and something many consumers completely neglect: savings.

2. Distinguish "Needs" from "Wants"

Make sure you have a clear understanding of what you need in life versus what you want in life.

You need to pay for the antibiotics when the doctor diagnoses a respiratory infection. You don't need to buy the latest movie released on DVD to aid in your recovery.

You need to pay the rent or mortgage. You don't need to buy the lovely accent pillows that beckon to you from the interior design boutique.

Always separate the needs from the wants-particularly if money is tight.

3. Monitor Your Spending

To see what you really spend each month, keep a running log of all purchases-no matter how small-for a full month. This will give you a visual display of where your money goes after you deposit your paycheck.

You may find that the $3 cup of coffee that starts each day adds up to $90 a month-a 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.

4. Create an Emergency Fund

Life is full of surprises-both 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.

"In most cases, consumers who find themselves dealing with a financial hardship are unprepared and have not saved for unexpected situations," 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.

5. Educate Yourself

When you attended high school or college, you studied history, mathematics, language and science, but there was probably no course in basic money management.

If you need help in meeting a financial goal-whether it's buying a home or reducing your debt-take advantage of community resources.

"Consumers 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," Giarratano says.

6. Don't Become a Victim

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.

"Identity theft is often an inside job," warns Robert L. Siciliano, a personal security expert with Boston, Massachusetts-based SafetyMinute Seminars and author of "The Safety Minute."

"Lower-level help desk workers and frontline call center employees often have access to all our personal information in their databases," he says. "What are you doing to protect yourself? If you're not paying attention, you could be a victim, too."

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' misfortune.

"Avoid using your credit card to make contributions," advises James Walsh, author of "You Can't Cheat An Honest Man: How Ponzi Schemes and Pyramid Frauds Work?and Why They're More Common Than Ever."

"Even though this can be a convenient way to proceed, many crooks are looking for credit card numbers," Walsh says. "They will press strongly for 'immediate support.' Don't rush."

Instead, initiate the call yourself, and select a reputable charity.

"Go with recognized names," Walsh says. "No organization is perfect; even the best-meaning groups occasionally misallocate money or fall victim to abusive employees. But larger charitable groups-like the Red Cross, the United Way and Catholic Charities-have the mechanisms in place to audit their people and performance."

Charitable contributions are tax-deductible, so keep good records of all donations-including small cash gifts.

---------

Fox Symes assists all Australians discover the truth about their debts and how they can rapidly reduce them. There are methods available to the Australian public and you can discover how to use these to assist you in reducing your debt with a free phone consultation from Fox Symes. Visit http://www.foxsymes.com.au or contact them directly on 1300 361 204.

---

Debt Management ? Watch Out for Bank Fees!

During the last twenty years, banks have offered a number... Read More

How Electronic Checks Work ? Will Paper Checks Eventually Go Away?

Traditional checks probably won't disappear anytime soon, but processing checks... Read More

Simple Ways to Save Money

Things are so expensive these days. We seem to be... Read More

Budgeting is Bothersome

It doesn't take much for you to get behind on... Read More

Budget Planning - Its Elementary My Dear Watson

Does it feel like you have to be Sherlock Holmes... Read More

10 Steps to Take if You Are a Victim of Identity Theft

There have been an estimated 9.9 million victims on America... Read More

A Fresh Start for Family Finances in 2005

While 40% to 50% of us make New Year's resolutions... Read More

How To Protect Yourself Against Identity Theft

Identity theft is a serious crime that continues to grow.... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

5 Steps to Healthy Spending Habits

Next to our physical health most of us are primarily... Read More

Dramatically Improve Your Stock Trading Success

Get Access to Realistic profitable strategies & discover the mindset... Read More

Save Money on your Clothing Budget. Tame the Closet Monster!

Reducing the clothing budget was a serious challenge for me.... Read More

10 Tips To Save Money When Dining Out

Here are some tips that can help you save money... Read More

Save Money Off Your Home Utility Bills

Many don't realize that our basic utility bills provide the... Read More

UK Graduates Looking Short-Term At Their Long-Term Financial Responsibilities

With almost two thirds of university entrants from England and... Read More

Money Matters: Strengthen Your Marriage by Putting Finances in Order

Did you know that 43% of all married couples argue... Read More

Credit Card Debt ? Watch Your Credit Report and Your Bill

Most consumers are aware of the importance of their credit... Read More

The Origins of Check Writing

People haven't always written checks to buy goods and services.... Read More

Grocery Savings - Your Kitchen is a Goldmine!

Your food budget is the most flexible area of your... Read More

Live Green; Save Green!

Have you seen the recent article on a new "green"... Read More

Top 10+ Ways to Jumpstart your New Year?s Finances!

Of course, these don't have to be done in any... Read More

Roth IRA Contributions - IRS Rules

Confused about whether you can contribute to a Roth IRA?... Read More

Check Facts and Figures

Are you a check fanatic? Don't worry, you aren't alone.... Read More

A Quck Lesson in Saving Money

Did you have a piggy bank when you were a... Read More

The Good and the Bad of Money Management

Good money management needn't be difficult. In fact, there a... Read More

Financial Readiness: Preparing for BRAC (Base Realignment And Closing)

The recommendations for military base closings have been released and... Read More

Chex Systems ? Why Every American Needs To Guard His Checking Account With His Life

Most Americans have been brought up to be concerned about... Read More

Strategies for Success

Holy Shenanigans! More STUFF?Loosing one's business due to lack of... Read More

Can You Afford Not To Look After Your Personal Finances?

Investing is a subject a lot of people don't want... Read More

The Wright Place - Finances

Women have a love/hate relationship with money. Most of us... Read More

Eight Ways To Sink Yourself Financially

1. Don't focus on your finances.The reason most people get... Read More

Government Grants - Beware of Scams

As the saying goes: "Buyer Beware". If you see ads... Read More

Money Matters - Really!

One of the biggest challenges facing black RELATIONSHIPS today are... Read More