Blogging for a Better New Year

By Sandy of Yes, I am Cheap

Day 25: January 26, 2012

Hi!  I’m Sandy and I’ve been blogging about how I’m working my way out of a 6-figure debt over at Yes, I Am Cheap for the past three years.  You’d think that by now I’m an expert at every money making and debt avoidance trick in the book, but quite honestly, I’m not.  It’s been a long journey filled with ups and downs and I’ll keep going until my balance hits zero.

At this time of the year it’s not unusual for people to begin reflecting on the past year and deciding how to make this New Year even better.  We like to call them resolutions.  For many years I avoided making resolutions because, honestly, haven’t we all promised to lose ten pounds for years now and somehow end every year with those same ten pounds?

But at some point I realized that every second, of every minute, of every hour, of every day, of every week, of every month, of every year, was a new opportunity to be better than the one that came before.  Every single day is an opportunity for improvement…it’s just easier to track if we make a nice list at the beginning of the year.  Here are my top resolutions for the year 2012:

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By Jenny of The Jenny Pincher

Day 24: January 25, 2012

The new year has come and gone and things have settled down for most of us. Many people (myself included) begin the new year full of energy and ready to go. We are full of ideas and things we want to accomplish in the new year. Then somewhere around week two of the new year, things slowly start to fizzle out.  By the end of January, the resolutions and goals are forgotten about and it’s back to the same old routine of life. We might have wanted to save more money or lose those last 10 pounds this year, but settling back into what we are comfortable is just too easy. 

As women, what if we could take one area of our finances and make a difference this year? I want to focus on investing because I think this is the one area that women fail to take action. Sometimes it’s out of fear, sometimes it’s out of lack of knowledge but whatever the reason, more women need to get started investing and they need to do it now!

According to the Womens Institute for a Secure Retirement, elderly women are twice as likely to live in poverty as men and experts do not predict much change in the future because:

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By GoGirl Finance

Day 23: January 24, 2012

The beginning of a new year is the perfect excuse to take a refreshing look behind and ahead of us, to take a moment to consider our priorities and how to better observe them. Though all of us will draft different sets of resolutions, tailoring them to our lives, there is one particular resolution we should all share: To get our finances in order. This is one resolution you can’t afford to break—and the benefits of a financial plan can significantly impact your lifestyle, so it might even help you to keep your other resolutions! Fortunately, it’s less intimidating than it sounds when you have a little direction. Here are some of the financial goals you should be considering over the next 12 months.

For yourself

Get confident about managing your money

Change your perspective on the idea of financial planning. It isn’t something that’s reserved for wealthy people; rather, it’s for the average person who wants to attain financial security. In reality, it’s not a difficult or expensive process. Especially if you’re not comfortable with all things financial, consider hiring a financial consultant—he or she will help you stay on track. And because of a process called compounding (where gains on your initial investment grow over time), the sooner you start, the better.

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By Erika of Newlyweds on a Budget

Day 22: January 23, 2012

This past year, my husband and I had one focus: save as much money as possible so we could survive four months on one income while my husband was in the firefighter academy (with no pay).

We took every measure possible—we downsized from a one-bedroom apartment to a shack, err, I mean a guesthouse. We limited our spending, we started couponing and we slashed our dining out budget. And the good thing is: we survived.

My husband graduated from the firefighter academy on December 10th and immediately started working two days later.

Now, with us fully knowing we’ll have two paychecks throughout 2012, what should our new financial goals be? We took the time to review these for ourselves and believe they will serve as an excellent guide for any new couples approaching a new year of finances:

Switch to a credit union
Out of sheer laziness, we’ve stayed with a big bank. We have an account with a credit union that we’ve just never used. We need to get in gear, and finally order debit cards and switch all our online banking.

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By JP of Novel Investor

Day 21: January 20, 2012

The beginning of a new year is a time for review, reflection and resolutions.  When it comes to your money it’s the perfect time to set goals, make changes and resolve to stick to those changes long term.  Whether it’s setting up and funding an IRA or just putting extra money aside for a rainy day, whatever the goal, how your money is invested, its asset allocation, and consistent rebalancing will be some of the most important decisions you’ll make as an investor.

What Is Asset Allocation?

Asset allocation is an investment strategy based on finding a balance for your money between different assets that fits your goals and risk level.  These assets are broken down into three main classes - equities (stocks), fixed income (bonds) and cash - which will make up your investment portfolio.

Unfortunately, there is no simple formula for figuring out your perfect asset allocation.  But there are some rules of thumb to follow.  The most important decision will be the split between risky and non-risky assets or your stock/bond split.  A conservative rule is to have “your age in bonds”.  According to this rule, if you are 40 years old, 40% of your portfolio would be in bonds.  For those who prefer more risk (age - 10) adjustments can be made.  It offers a starting point.  Once you have an asset allocation that you’re comfortable with, it’s time to make sure you stick to it.

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By Marissa of Thirty Six Months

Day 20: January 19, 2012

New Year’s resolutions are amusing to me, as they mostly consist of things such as losing weight, or traveling- or any other goal you can easily renege on come February. I have been part of that group for the past 11 years. I make goals such as “make an extra $10,000” or “lose 15 pounds,”, or “buy an Ipad 2,” or my favorite resolution from my childhood- “grow 3 inches in height.” These goals are fantastic, however, they are useless for me as I never had a concerted plan on how to achieve them. That, to me, is key to being successful in every goal. Having SMART goals not only allows growth, but it also creates a concrete action plan where I can see my progress along the way.

This year my main resolution will be to become more involved in investing, particularly online investing.  I feel that it is important to be in tune with how my portfolio is doing and learn to understand market trends.

Does investing need certain knowledge of the stock market? Yes.

Is that knowledge easily accessible with some research? Yes

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By Mary of World of Finance

Day 19: January 18, 2012

It is common to hear of diversifying your investments, as this helps take out some of the risk involved.  Why not apply the same strategy to your income stream?  How many income streams do you have?  A common answer to this question is: one.  Having one income can be very stressful, especially with all the layoffs we have seen in recent years due to the economic meltdown.

WHY YOU SHOULD DIVERSIFY YOUR INCOME

Less Stress

First and foremost, diversifying your income helps take a lot of stress out of the equation.  You don’t have to worry, “What if I lose my job tomorrow, how will I pay my bills?” Even if you get laid off from your day job, you can spend more time on your other means of income and grow it exponentially while looking for another day job if you so choose.  Having options and multiple means of income really helps decrease the stress factor.

More Opportunities

The more people you know and the more projects you are involved with, the more doors that could open. An opportunity for a promotion could arise at your day job or a contact that you have in the industry could inform you of a job opening and recommend you for it.  Or you could even get referred by a client of your side gig to other clients as word of mouth marketing can be very strong and lucrative.  No matter what you do, always remember to do it with a smile and you are sure to see positive results as people will take notice.

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By Paul Vachon of The Frugal Toad

Day 18: January 17, 2012

Being frugal does not mean shopping in thrift stores and having soup every night for dinner.  Being frugal simply means being deliberate in how you spend money, not impulsive.  There are many ways to be frugal but the key to making frugal lifestyle changes permanent in 2012 is to find ways to save money that will work for you.

Some Frugal Lifestyle Choices for 2012 

Automate paying your bills.  By automating your bills you will ensure bills are paid on time avoiding late fees and negatively impacting your credit rating.

Automate your savings.  By paying yourself first you ensure that your savings goals are taken care of before discretionary spending.  Even if it is simply setting up a monthly transfer from your checking account to your savings or investment account you are more likely to spend less simply because it is more difficult to access your money.

Eat out one time less per week. By eating out one time less per week you can save $25-$100+ per month.  Saving $25 per week can add up to over $1200 per year for a typical employee.

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By Corey of 20s Finances

Day 17: January 16, 2012

When anyone is starting out as a young adult, they are immediately faced with the new challenge of tackling their own finances. This often includes paying their bills for the first time, opening up a savings account (if they don’t already have one), renting an apartment, etc. All of the everyday things that may not seem all that important to experienced adults can be giant hurdles to someone fresh out of college. Having experienced this first hand and hearing from many other young adults, the biggest challenge is often not knowing what your focus should be - similar to not knowing what kinds of questions to ask. It’s hard to know what you don’t know. Even the most financially responsible individuals in their twenties may not be doing all that they can because they lack experience. So, what should a person fresh out of college be doing to successfully manage their finances?

Set Financial Goals

It is important to set financial goals at any stage in life. While a lot can be said about why they are important, the simple fact is that financial goals help you prioritize your finances. Even the most dedicated saver could be wasting money if they don’t know what they want to do with their money. For example, I would consider myself a saver more than a spender. Yet, it wasn’t until recently that I wrote down my financial goals. Prior to this, my wife and I were doing a decent job of saving, but we still splurged on some unnecessary items. Once I wrote down my goals, I realized what it would take to get there. I understood exactly how much we needed to be saving and investing to reach our goals. Writing them down and making them tangible was the extra motivation I needed to accomplish a lot more with my money. If you haven’t taken the time to write down your financial goals, this is the best time of the year to do it.

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