Problem What are the best resolutions for the new year that I can make for my personal financial planning?

        Strategy Plan and prioritize your affairs.

        Bruce J. Berno, a certified financial planner and a fee-only adviser in Anderson Township, says to, first, plan and invest in your career. Your ability to earn an income is your most valuable asset. Consider career-planning services or continuing education, if appropriate. Given our current economic environment, have a “Plan B” to prepare for unexpected job cutbacks.

        Define your goals clearly, in writing, and prioritize them. Develop both short-term and long-term goals in the areas of budgeting, insurance, taxes, home ownership, education funding, investments, employee benefit plans (including stock options) and estate planning (wills and trusts). Involve your spouse and family members.

        Live within your income. You must save money to achieve your financial goals without relying on a lottery ticket. Manage your debt load prudently. Home mortgage debt can be acceptable, credit-card debt is detrimental. Increase your savings rate and take advantage of new “catch-up” retirement-plan contribution limits if you are 50 or older.

        Automate your financial life to save time for important financial planning decisions. Use direct deposit and automatic bill paying and consolidate accounts for simpler record keeping.

        Prepare a net-worth report of assets (what you own) and liabilities (what you owe) and use it as a benchmark to measure future progress.

        Since financial planning is a process, don't try to tackle it all at once. Prioritize your needs and manage your finances throughout the year.

        Readers Consider Savvy Strategies as general information only and seek the help of professionals because circumstances might vary.

        Planners Share your unique tips with Enquirer readers. Send your Savvy Strategies to Amy Higgins, 312 Elm St., Cincinnati 45202 or e-mail ahiggins.com.

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