Be Sure to Include Financial Resolutions on List for New Year

If you're making your list of resolutions for the New Year, better include financial ones, as well. in Madison offers seven for 2012:
 
1. Pay yourself first. In 2012, commit to saving more! To make it easier, consider authorizing a direct deposit monthly from your checking account into your savings account to stick to this financial resolution.
 
2. Don’t pay for checking. Despite reports that the days of free checking are waning, there are plenty of banks that still offer checking accounts at no cost if you shop carefully. Direct deposit, banking online and use debit cards more can also help reduce motnhly charges.
 
3. Review your investments. If market conditions or your own needs are changing, it may be time to rebalance your investment portfoli. Make a habit of carefully reviewing all of your account statements. Consider meeting with your financial advisor to review your investments from this year to see if they’re on track with your short- and long-term financial goals.
 
4. Sharpen your retirement plan. Advice that applies to people of all ages, rather than hope you'll have enough for a comfortable retirement, take the time to calculate how much you'll actually need. If your employer offers a retirement plan, take advantage by contributing enough to get the maximum company match, if there is one. You can also open an Individual Retirement Account with your local bank.

5. Prepare for a financial emergency. Another reason to contribute consistently to your savings account, having savings helps you avoid putting emergency expenses from a sudden loss of income on your credit card and having to pay the interest charges. A reasonable goal is to save six months to a year’s worth of expenses.
 
6. Close unnecessary accounts. Not using a bank account? Consider closing it to avoid having to reactivate the account and the potential costs attached. If there's a credit card you haven’t used in a while, you may want to cancel it once the balance is paid, especially if it has a high annual fee. Your credit score is based on the length of your credit history, so you should keep your longest-standing account open and consider closing others.
 
7. Preserve your assets. A sound estate plan can help preserve your assets and keep them from being unnecessarily burdened with taxes and uncertainty about the future. If you’re not sure where to begin or what questions to ask, consider talking to your banker.