Happy New Year!

Unfortunately, there are many things affecting our financial lives that we can’t do much about (like the bozos in Washington – until the next election). It helps to take control of some small things.

Chip away at your fiscal cliff!

While it’s great to make and keep resolutions about losing weight and exercising, consider taking some of these steps in 2013 to become better organized and fiscally fit.

1)      If you are a long-term investor, only check stock market results once a day – if that. Getting caught up in market chatter will likely lose you money because it will take your gaze away from the long-term focus you should maintain.

 

2)      Take advantage of your smart phone and other portable electronics to track your spending.  I will be testing the Home Budget with Sync for iPhone, which allows family expense tracking from separate devices and will let you know in my blog blog how it’s going.

 

3)      Clear out really old tax records. Save state and federal income tax returns and supporting documents for seven years. If they are older than that, toss them (properly shredded, of course).

4)       When you pull in for gas, every once in a while, check the air pressure in your tires. Pressure less than the recommended amount will lower your mileage. Under-inflated tires can lower gas mileage by 0.3 percent for every 1 psi drop in pressure of all four tires. (Credit goes to my 13-year-old son, who learned this in science class).

5)      Make a list of magazine subscriptions – particularly the ones that renew automatically – and stop the ones you don’t read regularly.

 

6)      Read the books stored in your Kindle or tablet before you buy or download new books.

7)      Consider spending the points built up in your credit card loyalty program.  The points do not get interest like money in the bank. In fact, they decline in value because the items or services you are purchasing get more expensive due to inflation.

8)       Cut up old credit cards you are no longer using, but do not cancel the cards – your credit score is partially based on the ratio of your credit used to your total available credit. If you lower the amount of your available credit by canceling accounts, that could lower your score.

 

9)      Check the expenses for the 401(k) mutual fund choices available in your plan. Over an extended time the lower fees in many index funds are likely to significantly bolster returns compared with many actively managed funds.  However, make sure to ask a qualified financial advisor if the risk level is appropriate for you.

10)   This is an oldie but bears repeating: contribute as much as possible to your retirement plan, but make sure at least to set aside enough to get the company’s match, if any