Try to make your financial resolutions realistic

New Year’s resolutions are about making changes, and the start of the New Year is the perfect time to set goals and make changes in the way you handle your money.

What are your financial goals for yourself and your family? Perhaps you want to put more money away for retirement, or a child’s future college expenses. Maybe you have smaller, more immediate goals, such as saving for a new car or television.

Whatever your financial goals, write them down and outline the steps needed to reach them. Be specific, but be realistic.

A good place to start is to review your spending for the year. This will be easier if you use a checkbook software program, but the figures likely won’t be complete. Cash spent on small items adds up and needs to be taken into account. The idea is to determine exactly what you spent money on so you can identify unnecessary spending.

Another important step is to develop a realistic budget for the coming year. Again, the key word is realistic. No matter how hard you try, you’re not going to cut a $50 monthly phone bill down to $2. Gas is not going back down to 50 cents a gallon.

Once you’ve identified your goals, you’ll need to take action to reach them. It won’t happen without you. If your financial goals require that you take lunch to work four days a week, then it’s up to you to do that. Again, be realistic in your planning: If you know that, at best, you’ll only be willing to take lunch to work two days a week, then figure that into your planning.

Here are some other considerations for the New Year:

•Review your life insurance and disability coverage. Is it enough?

•Develop a plan to clear your credit-card debt. Once the debt is gone, vow to only use the cards periodically to keep the accounts alive, and only if you know you can pay the balance at the end of the month.

•Sign up for one money-related course or seminar per quarter, or read one book on finances. Staying involving with money will help you stay on track with your goals.

•Consider buying a savings bond each month with payments made automatically from your account.

•Check your credit report for errors.