Well, its that time again.  The time we say good-bye to another year and welcome the new one in.  Time to reminisce about the year gone past and time to anticipate the opportunities a new year gives us.

Many of us decide to plan for the New Year and new opportunities by setting resolutions.  But, once again, we wonder how long they will last.

This time of the year is a very profitable one for weight-loss centers and workout facilities.  With all of our grandiose plans we signup for those things that we “know” are going to help us fulfill our resolutions.  In reality, over the next several weeks we are back to the same old routine we had prior to our resolutions.

What are your resolutions this year?  Losing weight?  Quit Smoking?  Making that career change?  Getting in financial shape?  What ever your resolution, what is keeping you from achieving it?

One of the biggest points of failure is a lack of planning.  Most people make their resolutions in the last few days, and even hours, of the old year.  Little thought, if any, is put towards how they are going to be successful in meeting the challenge of the New Year.

This year can be different.  Plan now to be successful in 2007 and in each year that follows.  Try these suggestions and make your resolutions come to reality.

First, change your resolutions to goals.  Goals are those things that we seek to achieve and we work hard to make them happen.  Making them goals sets each time in a different perspective and gives us something to go after. 

Begin with the end in mind.  Set your mind now that you are going to complete and succeed in your resolution.  Vision yourself successfully achieving your goal and what would be different about your life once you achieve your goal.

Track your progress.  Monitor your goals regularly and see how you are progressing towards your goals.  Pencil and paper, spreadsheet, white board and marker - whatever works for you.  Keep track of your goals, your progress and your completion.  Don’t be afraid to set dates and work towards those dates of completion.

Like so many objectives, we never make progress because they are so big.  Your goals may be that way too.  Make it easier on yourself and break down your goals into tasks or sub-goals.  As you complete the all the smaller tasks, you achieve your goals!!

Be aggressive towards your achieving your goals.  If you pursue it like you don’t really care, then rest assured you will probably let success pass you by.  Anything worth achieving should take our focus and energy.

Don’t forget to celebrate.  As you achieve your goals celebrate your success.  The ability to celebrate will help you to tackle the next goal with even more aggressiveness.

One of the great things about being the financial coach for FamilyNet’s Mornings with Lorri and Larry is that I get to meet many people.  Most are on the phone calling in with financial questions that we all would like to have answered.  In addition to Lorri and Larry, there are some great folks behind the scenes.  One is Tim Rhodes.

Well you might not know Tim, but here is your chance.  See, we are not only in a Presidential election but we are in a Savings election and Tim is my candidate.

On a recent show, Tim listened to me sharing with viewers how they obtain a higher rate of return on their simple savings.  Tim, after asking some private questions, decided to check it out.  What he found was money and notoriety awaiting him and his wife.

You see, he happened upon a savings contest that is being held at FNBODirect.com.  Tim was able to submit an awesome video and is now one of the finalists!!

You can help Tim and his wife by voting for him in the contest.  Lets do all we can to make sure one of our’s is the winner!  Forward this newsletter to your friends and ask them to vote for Tim too!

Click here to see his winning video, read more and VOTE!!

Click here to hear Tim interviewed on Mornings.

Is now a good time to buy more investments?  Well that depends on two things.  First, are you positioned to buy and, second, have you done your homework?

 I do believe, like Warren Buffet, that stocks are on sale.  What do people do when things are on sale at the grocery or department store – they buy.  They study what the sale items are, how much they are on sale and whether the price is actually worth what is being asked.

 Your own personal financial picture must be one that allows you to buy.  What I mean is you should be following the seven steps and if you are in steps 4 – 7 then it is a good time to buy.  It is important to make sure you have an emergency fund fully funded and no debt outside of your mortgage.  If you are not there yet, look at the current market as a sale you are going to have to pass up for the time being.

What to buy?  As we wrote last month, do your homework and diversify.  You should be spreading your money out over, at least, four different areas.  Inside those specific areas, mutual fund purchases bring an additional layer of diversification.  It is important to only purchase mutual funds that you have studied, are the best you can find and you have a knowledge of what they are invested in.

 Yes, it takes time.  Researching and finding solid funds to invest in will help you weather future downturns in the economy.  They are going to happen and you need to be ready to NOT panic.

 When I was younger, I used to love the roller coasters once I finally got my nerve up to ride my first one.  They are fun!  As you head up that first hill, things are so nice.  You are seeing the tree tops like you never saw them before.  Over there – that’s the river, the parking lot….we are getting higher and higher until we reach the top and we start down.  Wow, this is nice – slowly heading down, down, down until – the last car tops the hill and off we go.  We are moving to fast to see if there is a bottom and then, all of the sudden we are jerked back up another hill for another climb….  You know, I never got hurt on the roller coaster like I would if I had jumped off…

 Hang on for the long-term ride….

Many people I meet now are discouraged about their investments or the stock market in general.  They say that their investments have lost a great deal of money this year and they wonder, in many cases, if they should do something drastic like sell off, stop contributing, etc.

 It can be a very unnerving time in the world of investing.  It seems like yesterday that things were going like gang busters and all of the sudden it stopped.  Unfortunately, even the best of investors can not time the market perfectly.  Would that not be nice?

 Most of us invest on emotion.  Better said, we buy when the market or securities are up and sell when they are down.  On thing to remember is that we are all investing for the long term   Your expectation should not be to make quick money.  If it is, that will lead to bad decisions and very risky investments.

 Long term – what does that mean?  Simply put, do your homework on investments and investing in solid mutual funds while you diversify your investments. 

 Homework?  Look for solid mutual funds that have a long, successful, track record of delivering strong returns.  Having a fund(s) that have been around through economic ups/downs, political elections and fiascos, natural disasters and whatever may happen – and the fund can still deliver a great average return is something that should be looked out.

 There are other items to look at, but investing for the long-term is crucial.

 Diversification is simply spreading your investment money across multiple areas of the stock market.  Finding the best funds in these four to five areas will help you weather the investment storms that come up once in a while.

 Those storms may be small or large, but looking at the long picture helps us realize that the storm will not last forever!

It is here again.  That time of year that our kids typically dread – back to school time.  I learned this week, that one school district in my state has already started back!  My children, like yours, are dreading the return of school.  Truth be known, they are dreading the more disciplined approach to the day.  They do not like the thought of going to bed earlier and getting up earlier.  Yes, it will also be time to make their lunch and get prepared for the day. 

 As parents, we need to make sure that they are ready for school work.  Millions of dollars will be spent these next few days and weeks making sure they have paper, pens, pencils, binders, lunch boxes, crayons, etc….   Oh yea, don’t forget the new wardrobe.

 If you are a parent you know what I mean.  If you are the parent of a middle school child you know how bad the wardrobe piece starts to get.  They have to have the best name brand items that life will allow.

 Are you ready for the back to school supply push?  Have you figured into your August or September spending plan all of the costs of going back to school?

 We need to stay focused and purchase school supplies that are in tune with the spending plan we have built.  It is very easy to over extend and purchase all the things our children want, but what do they really need.  Work from a list and have set dollar amount son the list so that you are spending your money wisely and according to plan.

 Make sure that you shop from the approved supply list from your child’s teacher(s).  This will help you to stay on track to buy only what you can afford to pay.  Also, make sure that what you are requested to buy is really needed.  Feel free to question your child’s teacher.    

 The point is – stay on target!  Don’ go crazy and over spend.

 Finally, where you can, take advantage of your state’s tax free holiday.  In my home state of Georgia, the tax free weekend is this weekend for school supplies and clothing.  There are limits on the amounts, so make sure you know what you can and can not purchase.  Use the tax free time to stay under your budget. 

 If you are not in Georgia, when is your state’s tax free holiday?

 Enjoy your shopping and best wishes to a successful school year for your children.

It is hard to believe that July is here.  For most of us, it is hot, humid and hazy – summer is in full swing.  Before you know it, our children will be back in school, vacations over and we will be preparing for fall and winter.  Where does time go?

 Looking back, it was just six months ago that we were in a brand new year.  None of us really new what 2008 would hold.  All of though, in some way, had our plans for what we wanted to do this year.

 Some of those plans, resolutions if you must, were things that we failed to accomplish in 2007 but knew we would get to them this year.  “Good intentions”, I think, is what they are called.  How many of us have actually lived up to those?

 I prefer to call them goals and not resolutions.  In most cases, resolutions never get completed.  Goals, on the other hand, when really managed, tracked and worked to get done.  What were yours – goals or resolutions?

 What has all of this to do with finances?  Well, let me ask – what have you done about your financial goals or resolutions that you set six months ago?

 For some it was the year that you were getting out of debt.  You were tired of the ball and chain of debt and it was 2008 that you were going to do something about it.  Worry, stress, lack of sleep – they were all going to be part of your past because you were getting out of debt.  So how is that coming?

 For others it was the year that you were going to begin investing.  We are not getting any younger and the possibility of retirement is getting closer each day.  Getting money into investments now, in 2008, is going to help you take advantage of the investment principles that will make your money grow.  How is that coming for you?

 Still others are tired of having a mortgage.  You are tired of the thought of something happening to your number one investment and you are finally beginning the process of paying more on your mortgage to get it done and behind you.  How is that working out?

 Finally, some of you have decided that this is the year you are going on a paid for vacation or paying for your 2008 Christmas with cash.  How much do you have in those accounts so far?  Are you on track?

 I could have waited until December to write and send this, but what could you have done then?  By then the year is gone and you have no way to complete your goals.  Right now, there is still time.

 Get going.  Yes it is July, but you have almost six months to get back on track.  Review your goals and begin a plan to get them completed – this year – 2008! 

 We have all let the things of life get in the way.  Now is time to stop and get re-focused!

As we wrote last time, preparing for our earthly departure is not something that we want to think about day in and day out.  However, it is important that we do some planning   Not only is it important, but it will help those that we leave behind in a much better position to carry on.

There is one thing that will compliment all the items that were suggested in the last article.  This one item will really show those around you how much you love them.  In fact, I call it the “Love File”.  Every home needs one. 

 Most couples have the “primary” spouse – the one who typically takes care of all the necessary documents.  The other spouse is often left out, not because they do not have a need to know, but because we just don’t get around to it.  Having a “love file” will leave all the pertinent information, or directions to that information, in one location to be retrieved in a quick manner.

 While the primary reason for this file is for when we are gone, recent disasters have shown us it is a quick, timely way to keep track of our personal information if we were forced to leave our home quickly and needed to grab the important “stuff”.

 What do we need in this folder?

1. The Master Document – just an overview of all the documents listed in the file.  Some may call this an executive overview.
2. Account Information – a complete list of all checking, savings, investing and other financial accounts and account information
3. Benefit Documents – a complete listing of all benefit information.  Many spouses have no specific information on items from their spouses benefit plans – health insurance, life insurance, short/long term disability, 401(k)/403(b) plans and anything else that may be important in this area. 
4. Assets and Liabilities – a complete listing of all assets and all liabilities.  Any information specific to those items should also be listed.
5. Directions on Handling any Business Assets – if you have a vested interest in a business or partnership, any specific instructions should be documented here.
6. Copies of Wills, Living Wills, Powers of Attorney and Health Powers of Attorney copies of those documents, or specific instructions on where to find those documents will again help take some stress out of the situation.

 Make it a scheduled task to update this information any time information changes and definitely once a year.  A good time to remember to update the file is every year on your birthday – one day most of us keep track of.

 Place this file where it is secure, but accessible by the family members who may need to the information at some time.  It will be those that you love the most who will find this information helpful at a time when they need it the most.

Most of us get busy doing the day to day things and never take the time to stop and prepare for when we are gone. I know, we do not want to think of that and, besides, we are all too young. I wish it was that easy to do, but life happens everyday.

While it is a difficult thing to think about, let alone talk about, you really need to stop and put plans in place for when you are no longer here. One of the worst situations is experiencing a loss and learning that the person had not done the necessary things to manage his or her estate.

What is there to do? Much so as to make sure your loved ones are taken care of.

Let’s start with life insurance. Unless you have no family and no debt – you need a life insurance policy. Life insurance is there to replace the income of a loved one who has passed. Additionally, mom’s who stay at home and raise a family need to be insured as well. Many parents neglect to insure themselves, including mom, and unfortunately there are fathers who are left to raise a family while they need to continue to provide an income. No one wants to think of that, but it does happen.

Are you over 18 and breathing? You need a will. The type of will you need depends on certain factors in your life.

First, if you have children under the age of 18, you need to make sure that they are protected in the event of the death of both parents. Protected in the sense of guardianship and financially. Identifying the right guardian(s) and writing them in your will is crucial in deciding who will care for your children if you both are gone.

Financially, making sure your children have money to take care of them and for future needs like their education. This can be written into your will as well.

Having a Power of Attorney (POA) is something that can help you and your spouse manage the day to day needs you may have. This document will allow someone, preferably your spouse, take care of legal needs on your behalf. These documents can be limited in time and limited in scope.

Finally, a Living Will allows you to document your wishes in the event you become incapacitated. It directs medical personnel in how to handle your wishes of life support. It is, again, another area where we wish not to think about or discuss, but when we think about the recent Terry Schiavo case, it can help our wishes be known and allow those faced with final decisions to do so with a little less pain.

All of these items, and more we have not discussed, are best addressed by an attorney. Yes, you can write your own will, have it notarized and it will stand up in court. But paying someone to “dot the i’s and cross the t’s” will make sure that they are correct and truly reflect our wishes, protecting us and those we love.

Many of us are spending time “spring cleaning”. We’ve cleaned out the garage, the closets and the storage room. Hours have been spent cleaning out the flowerbeds and sprucing up the appearance of our homes – inside and out. But, how much time have we given to our finances? What have we done to clean and tidy up things around our money?

For most people, we do not spend our spring thinking about finances. The reality is we don’t spend much time at all thinking about our finances.

Like anything else, some preventive maintenance will help you manage your financial picture in a way that brings about less stress and more peace. You could spend many hours in your financial spruce up, but working on these few items now can help you manage your finances throughout the rest of the year.

1. Start a Spending Plan – Are you managing what you spend, living on less than you make and saving for the future, as well as any emergencies? By simply spending a few minutes at the beginning of each month and planning your income and outflow, you can learn to live on less than what you make while, at the same time, work to get out of debt and begin to build some wealth from our labor.

2. Avoid Credit – Begin today to cutoff off all credit – including the credit cards. Cut up the cards and begin a systematic approach to paying off the debt you have.

3. Bills Management – Are you managing your bills or are they managing you? Do you have too many due at one specific time of the month? Take a calendar and mark each day a bill is due in a typical month. From that picture, work with the companies to change your billing schedule to help improve your cash flow. This step will also help you manage to your spending plan.

4. Balance Your Accounts – When was the last time you balanced your checking/savings/brokerage accounts? Did you know that financial institutions make honest mistakes frequently? Your opportunity to correct those mistakes, while it varies by institution, is a very small window. Balancing your account against your statement(s) will help you stay on top of any issues and help you maintain an accurate balance going forward.

5. Investigate Your Insurance – Most of us feel like we are “insurance poor”. There is the auto, home, medical, life and more. But really, how much do you need? What are the right deductibles? You need insurance, but your need the right policies at the right price. Shop to make sure you have what you need, at the right levels, and at the best possible price.

6. Check Your Credit Report – Have you checked your credit report recently? Not only will you learn what you really owe, but you can also see if someone else is tampering with your identity. Checking your report, at least annually, will help you stay on top of your outstanding debt and help you monitor yourself against one of the fastest growing crimes – identity theft. Here is Georgia, we can obtain our reports twice a year at www.annualcreditreport.com .

7. Refinance – If you are in an ARM or interest only mortgage – get out! Rates are still low. Now is the time to refinance to a 15-year conventional mortgage. This will also help show you if you are in more house than you can afford!

As you can see, seven simple tasks can help you get started on getting your financial house in order and set you towards a financially successful year.

It seems as if it will never stop.  Just this week I was driving down the road and there were three different gas stations at one intersection.  One had fuel for $3.23, another for $3.25 and the final station was $3.35.  That is up from $3.17 just 10 days earlier.  This is crazy!  It used to be that Georgia had the least expensive prices of fuel in the southeast.  Those days are gone.

Some of us can remember back to the late 70’s and early 80’s when a similar situation played out.  Seems to me that the price per gallon was 80 cents to $1 way back then.  That seems so long ago.  At the time, I was just beginning to drive and paying my own gas money.   Many of as in high school felt them impact on a little income.  Others had the luxury of relying on mom and dad for their gas money.

Now it appears to be happening again.   I am not sure what was driving the price up 25 – 30 years ago.  Today, among other things, it is consumption here in the U.S and abroad like India and China.  Additionally, in the summer months the EPA requires that special formulated fuel be required in many, if not most, metropolitan areas and that pushes the price up.  Additionally, there are the taxes.  Just today, Republican presidential nominee John McCain proposed having a fuel tax holiday in the summer months. 

What can you and I do now to help us in managing our finances and, specifically, the impact on our wallets. 

First, shop around.  Be on the lookout for the gas pumps that typically have the lowest price.  Sometimes, these typically will be the big box stores like Walmart/Sam’s, BJ’s or Costco.  It may be your local gas station.  It is tempting to drive until you find the cheapest and in the process waste a precious $3.35 gallon of gas.  Find the place that is typically the lowest price and stick with it.

Second, reduce your usage.  We are in the habit of driving everywhere at any time.  We will drive home from work, find out we need milk and run back out to the store.  After dinner we take the kids to soccer practice and while we are out we can stop at the bookstore.  Ok, I am being a little dramatic, but bunch up your errands.  Find out what is needed from the grocery before you leave work.  Carpool with other parents to take the kids to practice.  If you live in a more rural area, combine your trips to town to once a week.

What about carpooling or even working from home.  Many companies today offer programs in these two areas for their employees.  Today’s technology allows more of the workforce to work remotely and taking advantage of the program can help in saving on fuel expenses.

How about selling the “guzzler” and buying the more efficient, economical used car.  A couple things come to mind here.  First, you have to find someone who can buy guzzler.  A couple of years back, when the SUV’s started losing their appeal, the definition of and SUV was “Simply Unsellable Vehicle”.  That may be the case with many cars today.  If you can make the change, while paying cash for the NEW used car – go for it. 

Nothing is simple or easy, but we need to make sure we stick to the spending plan.  You may find that with the fuel line item in the spending plan increasing, you will need to cut back in other areas to compensate.  It is times like these that people begin spending beyond what they have coming in and it leads to debt – credit card debt.  Keep in mind that when you are paying at the pump you are most likely going to find higher prices everywhere – the grocery store, the ball park, restaurants, clothing, etc. – everyone is feeling the pinch.

Taking your income, cutting back where you can – in your spending plan and in your consumption – will help you weather this problem.  Hopefully, it will be short lived, but no one knows!

Have any more ideas to share with readers to blog?  Post them here….