When December comes around, you may want to know what you can do to take more responsibility for your money in the coming year. A good first step is to stay committed to the financial goals and strategies you may have mapped out with your financial professional.

But, if you want to do more, you may benefit from following a few popular strategies. I won’t call them resolutions because that implies major behavioral changes that can be hard to stick with. These are easy actions to take at any time of year—though, obviously, the sooner you follow through on them, the sooner you may see the benefits.

• Be organized. Some quick tips: pay your bills on time to avoid fees and to maintain a healthy credit record. Get crucial paperwork in order (e.g., wills, mortgage documents, health proxies, and deeds). Set up automatic payments to your 401(k) plan, savings account, or rainy day fund.
• Track where your money goes. Know the value of your assets and the extent of your debts; pay down bad or unsecured debt, and save credit cards for emergencies. Record spending with computer software or with a notebook; you might discover that you can make do with what you have already. Ask yourself if you really need that impulse purchase before you buy it. Don’t live on what you don’t have: set up a budget—it may take several attempts to perfect, but it’s a great way to get finances on track.
• Understand your investments. Depending on your financial picture, having more investments in your portfolio doesn’t mean you have a better portfolio. Know what you have and why you have it. Adjust holdings as necessary if they don’t suit your circumstances or long-term goals. If your current financial professional can’t clearly explain to you what an investment is and why you should have it, do business with someone who can.
• Stay focused on your ultimate goals, not on what everyone else is doing. Ignore the hot stock tips and where the talking heads on cable say to put your money. You deserve guidance tailored specifically to you, not the widest possible audience. Increase your contribution to your retirement plan if you can (e.g., use the amount of your annual raise at work).

While proper planning is key in good times and bad, it’s even more critical in today’s challenging economic times. A sound financial plan will help guide you through these turbulent times.

And please accept my best wishes to you for a prosperous holiday and New Year.

Article courtesy of Betsy Hartman, Hartman Financial Inc., 1914 Belair Road, Fallston, MD. 21047 • www.HartmanFinancialInc.com – She offers a full range of financial services as an Investment Adviser Representative of Commonwealth Financial Network, member NASD/SIPC, a Registered Investment Adviser. She can be reached at 410.879.9951, or at betsy@hartmanfinancialinc.com