10 ways to improve your finances in 2007

The new year is the perfect time for an annual review of your finances and making decisions about your money. Here are 10 ideas to consider.

1. Review your insurance — life, health, auto and homeowner — and see if you can get a better deal anywhere else. Make sure the life and health is realistic for your family’s current needs.

2. Check your credit report for accuracy. Keep track of your FICO score, and make a plan to raise it by the end of the year.

3. Pick a credit card to pay off completely, and then put it away. Don’t cut it up or cancel the account — your financial history is part of your total credit score.

4. When your W-2s come in, check your deductions. If they’re too low, you’re letting too much money sit all year without gaining interest. Yes, it’s nice to get a refund, but it’s better to change your deductions (within allowable limits) and bank the extra from every paycheck.

5. If you’ve had PMI (private mortgage insurance) on your home loan, find out if your mortgage is now low enough that the PMI payment can be taken off.

6. Develop a security plan to keep your personal information safe. Invest in a shredder (confetti type) and don’t leave checks in the mailbox overnight (if theft is a problem in your neighborhood, consider renting a mailbox for bills and checks.)

7. If you’re computer savvy, consider putting unused items in an online auction, or use one of the companies that will do that for you. This gets you a double bonus: You have extra money to put into savings, and you’ve cleared out some clutter. For large items, a garage sale will get the same result.

8. Take a hard look at your budget. Is it realistic? Can you tighten it up anywhere and find a way to put an additional $100 per month in savings?

9. Is your will up to date? Does your spouse know where to find it?

10. Take digital photos of your home and contents, and store the photo files somewhere besides your computer. A flash drive in a bank box is ideal.