Services: Financial Planning
Getting in shape might be the most common resolution, but Angie’s List members are just as focused on their bottom lines going into 2010.
Angie’s List, the nation’s leading provider of consumer ratings on local service companies, surveyed its members this week to learn their New Year’s resolutions.
More than 80 percent of respondents have established goals to be healthier in 2010. Most will exercise more, nearly half want to lose weight and nearly that many plan to improve their eating habits.
About 65 percent of members responding have set financial goals. One-third plan to reduce or eliminate their debt; 21 percent plan to plot out a budget and stick to it and 14 percent plan to talk to a financial advisor to get their financial house in order.
“It’s too early to know what 2010 will bring, but it’s clear that people are still thinking about their pocketbooks,” said Angie’s List founder Angie Hicks. “There’s no better time to evaluate your position, and there are plenty of reliable experts out there to help you plan.”
Angie’s List tips to get your finances back on track in 2010:
· Prioritize your debt: Examine your debt and develop a plan to pay it off. Look closely at the interest rates you are paying, rather than the balances due. It might be tempting and emotionally gratifying to pay off the lowest debt first, but it makes better fiscal sense to first pay off the debt with the highest rate.
· Pay more than the minimum: If you continue to pay only the minimum balances on your interest-laden debt, you’ll likely be spinning your wheels for a while. Instead, establish a monthly budget that allows you to put extra money towards your highest-interest debt first. Once that debt is paid in full, take the money you were paying monthly towards that bill and apply it to the debt next in line and so on. Remember, this plan will not work if you continue to add debt to your existing lines of credit.
· Save while you pay: Put savings at the top of your priority list, rather than the bottom and make certain you set aside additional money each month in savings to prepare for any unexpected expenses. The best way to save is to have money deposited directly into an account. If you get a raise at work, give your savings a raise, too. Once you have paid off all of your debt using the tips above, continue placing the funds you had paid monthly towards the debt in a savings account until you have enough to meet your living expenses for six months.
· Avoid bad habits: Attach a note to your credit cards asking yourself if that purchase is really necessary. If your friends or family are all about shopping, eating out, or living for the moment, then it’s important you let them know that you can no longer indulge in those activities. If they are really your friends, they will support you. They might even be relieved.
*1,154 Angie’s List members took our poll. Responses are representative of Angie’s List members, but not the general public.
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