As you say goodbye to 2009 and look forward to better times in 2010, take a moment to review your list of New Year’s resolutions and add some that will help you manage your finances and lead a richer, more fulfilling life. Here are some that will help you feel more in control of your money when 2011 rolls around.

I will budget.
Have a plan at the beginning of each month on how you will spend your money and how much you will save. Keep track of your expenses and try to stay within the budget of each category. Use online software such as Mint or Quicken to make this easy, and also to compare your expenses to averages in your state or area.

I will keep track of my cash
Make it your business to know where every single penny of your money is going. In an age of autopayments and online bank statements, it is easy to put your finances on autopilot. While there is nothing wrong with taking advantage of these online features, you must still make it a priority to check each of your statements and transaction histories for irregularities. Avoid fees and finance charges by knowing your credit card balance and paying it off in full each month. Also, keep account of where you spend your money. This will help you understand your own lifestyle better and make cuts or increases in proportion to your income as it changes. For example, let’s say you have been spending $200 on eating out each month for the last few months and now would like to save more money by cooking at home. If your income has gone down by 25%, you can reduce your dining out budget proportionately and decide to spend only $160 each month on restaurant meals. This type of proactive change is only possible if you know how much you have been spending on eating out in the past.

I will make my money work hard for me.
Take an interest in investing your money for the best returns at an acceptable level of risk. You can never have too little to invest. Even if you have only $1000 saved, you can open a brokerage account or buy indexed mutual funds to get started on the path to making your money work hard for you. Educate yourself by reading the many financial news websites out there. It is easier than you think.

I will give away.
The best part of having financial security is being able to help others. Make giving a part of your overall financial plan. If you are constrained for money, make it a habit to regularly give away your time or advice to those less fortunate. If you can afford to make donations, then spend time on researching organizations and causes to find something you are truly passionate about. The joy of giving is another happy outcome of good financial management.

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