Posted by: Dennis Hinkamp on Jan 29, 2010
Setting Financial Goals for 2010
ASK A SPECIALIST: DO YOU HAVE TIPS FOR SETTING FINANCIAL GOALS?
Answer by: Ann House, Utah State University Extension area agent and Utah Saves coordinator
As the new year begins, take the time to set financial goals. Many new year’s resolutions and goals are never achieved; however, Utah Saves at http://www.utahsaves.org/ gives tips, strategies, inspiration, encouragement, motivation and information to help you stay on track and reach your financial goals.
Goals you may want to strive for this year include:
• Spend less than you earn. Make a budget and keep track of your spending. This will allow you to see where the money is going, allow you to examine ways to reduce expenses and show where you can find the money to save, invest or prepare for future needs.
• Have a plan by setting financial goals. Set short term goals (immediate to one-year), intermediate goals (up to five years) and long-term goals (five years or more). For example, maybe you have a goal of $1,200 for a new refrigerator at $100 a month for a year. This becomes a line item in your budget. Once the goal is met, the $100 can then be allocated toward other goals.
• Get organized. Make a financial information binder by using a 4-inch ring binder with page dividers. Examples for the sections include a personal directory, professional directory, personal property inventory, net worth statement, tax papers, loan information, insurance policies, social security and pension benefits statements and credit reports.
• Save for expected events such as retirement, vacations, holidays, birthdays and anniversaries.
• Financially prepare for unexpected events such as emergencies, job loss, illness and accidents.
• Always know your interest rates. Avoid paying anything higher than 13 percent interest on loans.
• Keep a healthy credit report. Go to ftc.gov to learn how to improve your report. Receive a free annual credit report at https://www.annualcreditreport.com/cra/index.jsp. You may want to check on your credit score every year or so, at the above Web site. The cost is usually under $10. A good credit score is in the mid to high 700’s.
• Avoid waste. Do such things as eating in often, clipping coupons and buying on sale.
• Take advantage of tax breaks. Request your tax credits, utilize the volunteer income tax assistance program (VITA) at http://utahtaxhelp.org/and invest in tax-deferred accounts.
• Fill in financial gaps by selling used items at garage sales or consignment sales. Recycle where possible. Don’t discard items until they are completely used up. Learn how to do repairs.
• Give back to your community. Donate when you can, but do it carefully. Go to http://www.consumerprotection.utah.gov/ to learn more about charity fraud. There are also many volunteer opportunities. Check with your local non-profit agencies.
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Direct column topics to: Julene Reese, Utah State University Extension writer, Logan, Utah, 84322-4900; 435-797-0810; julener@ext.usu.edu
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