Ever wonder where all your money goes? You don’t have to. As you consider personal goals for the New Year, take stock of your financial picture and create a sound spending and savings plan for 2004. Lutheran Social Service offers the following suggestions as individuals and families think about their finances for the coming year. Set goals Do you want to pay off your car loan, establish a college fund, put more money away in your company retirement plan, or increase your charitable giving? Write three-to-five financial goals this year and challenge yourself to stick to them. Clarify your financial picture Figure out what you owe by gathering credit card statements, car payments, mortgage payments, and any other loans. Then write down what you own, including the equity you have in your home, savings, stocks and retirement plans. Have a spending plan Track your saving and spending – down to vending machine items and special coffees. Some people discover that they spend $100 a month on what they thought were trivial expenses, and then changed their spending habits. Become a regular saver Establish a payroll deduction plan with your employer or a credit union. Do your own lawn maintenance and car washes. Clip and use discount coupons. Make comparison shopping a habit. Review your insurance That includes home, car and life insurance. You may want to change your policies to improve the benefits to you and your family. Write a will Make sure you decide, on paper, where you want your assets to go when you die. Otherwise the courts will decide for you. Review your credit report Your credit score affects your ability to buy a home, secure a car loan or get an apartment. It’s a good policy to check your credit report annually and determine whether you have good status or need to improve your score. You can find your credit score by checking with a major credit bureau such as Experian, Transunion or Equifax. Develop a holiday spending budget If you plan to pay your holiday bills for more than the next 60 days, it’s time to make some changes! Start setting aside money now for next year and open a special savings account just for holiday spending. For more information about budget counseling or debt repayment planning assistance, call Lutheran Social Service at (888) 577-2227, or visit www. lssmn.org/debt.
