It’s the start of a new year, which for many people means it is time for resolutions.
Plenty of people will confidently pronounce their vows to shape up, eat right, save more money and cut out excesses to be better versions of themselves in 2011.
Best intentions aside, many people are prone to the resolution slide, that gradual decline in dedication that creeps in as the year progresses. For evidence, one only needs to compare traffic levels at the gym Jan. 2 to traffic levels Feb. 2.
From a financial perspective, however, there are easy steps that people can use to get their houses in order.
Stop paying ATM fees. Withdrawing from an automated teller machine outside of your bank’s network commonly results in a fee of a few dollars. If your own bank tacks on a surcharge for going out of network – and many do – it could result in an overall cost of $4 or more for each transaction. Making two such transactions each week translates to shelling out $416 in the course of a year just to retrieve your own money.
A better option is to work with a national bank that has a large network of conveniently located ATMs or with a local bank or credit union that has formed alliances to grant no-charge ATM usage.
Don’t overpay your taxes. That rebate check you received from the Internal Revenue Service last spring was like free money, right? Wrong. It’s actually reflective of the fact that you overpaid your taxes throughout the year, in essence giving the government an interest-free loan. Don’t make the same mistake again. Work with a qualified tax professional to adjust your withholdings so you receive only a small refund on your taxes. That way, throughout the year, you can put your money to better use through investments that offer compounding and greater returns over time.
Look for package deals. Get an estimate on the cost of consolidating your traditional home telephone, Internet access and long distance and cell phone plans with one provider. Do the same with insurance. Look for a carrier that will reward you for bundling your car, life and home insurance policies with them. Do the math to make sure you’re getting a good deal in exchange for your loyalty.
Check your credit. Under the Fair Credit Reporting Act, you are entitled to one free credit report a year from each of the three nationwide credit reporting companies – Experian, Equifax and TransUnion. Use their online tools to keep an eye on your credit score, and report any errors.
Seek help. A qualified financial adviser can help you create or update a personalized financial plan that includes reviewing your insurance policies, banking relationships, investments, loans and budget to help you find everyday savings that could prove valuable.
Unlike some resolutions that might be made for 2011, these require little time commitment, so no excuses.
Paula Dougherty, CFP, ChFC, CLU, is a senior financial adviser with Dougherty & Associates, Ameriprise Financial Inc. in Springfield. She is licensed in Missouri, Arkansas, Kansas, California and Arizona, and may be reached at paula.j.dougherty@ampf.com.[[In-content Ad]]
