New Years Saving Resolutions, and the Tools for Resolving to Keep Them.

This time of year we all like to indulge in self improvement and personal achievement. Clients tell me every year that the goal will be to save.

My question is always “What will you DO differently this year, which will change the habit for you?”

I have compiled a few suggestions for those of you interested in setting this goal for yourself in 2012.

1.       Set an actual Goal

a.       How much every week, month, total at the end of the year

b.      Why? What is the reason or purpose of the saving?

2.       Plan where, when, and how

a.       Where will the money be (bank, piggy bank, envelope, coffee can, etc...)

b.      When will you make the deposits (day, date, tax return, etc...)

c.       Will you deposit cash, defer to a savings account from your direct deposit, will you work and extra job to make the money and that will dictate the other two questions

3.       How often will you review the plan

a.       Daily

b.      Weekly

c.       Monthly

d.      Quarterly

4.       What are the parameters or rules for utilizing that saved money for emergency (no answers are incorrect, it is your money, but knowing what you consider to be valid BEFORE, helps you to make that decision

a.       Car broke down

b.      Friend birthday

c.       Need cigarettes

d.      Everyone else is going and we should go too

e.      Because I want one and it will be more expensive when it is off sale

5.       Tips for saving the money at home

a.       Convert the dollars to Silver Dollars first (or whatever denomination you prefer). Many people would rather not spend these coins. It becomes a collection, and it helps us to stop and think before we spend.

b.      Put the funds directly into a Christmas Club Account with your Credit Union

                                                               i.      This keeps us out of the account PLUS

                                                             ii.      This keeps us from being able to use it in case of emergency MINUS

c.       Keep a clear piggy bank (no offense to other barnyard animals) in plain view, this will remind you that you are saving and people tend to put money it (YES...they DO!)

HAVE A HAPPY, HEALTHY, AND PROPEROUS NEW YEAR!