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This year was yet
another challenging year for many Nigerian families, with money matters
causing much concern. The end of a year is a good time to reflect upon
how you have fared over the past year, both your successes and any
failures. A new year brings with it a sense of renewal and the age-old
tradition of new-year resolutions helps you to focus on making positive
changes in various aspects of your life.

Many people make
new year resolutions to exercise more regularly and maintain a
healthier lifestyle, to be more prayerful, to read a book a month, to
be a better mother, father, sister or friend; One resolution that is
often ignored is to focus on getting your finances in order.

Here are 10
achievable financial resolutions to set you on the right footing for
2011. Don’t try to initiate them all at once or you will become
frustrated and abandon them; just elect say three or four that you can
start to address.

Get organised

An annual review is
necessary because finances are dynamic; needs and goals change, family
situations change, jobs change, incomes increase, children are born,
others are off to college. Do you have a clear picture of where you
stand financially? Start by gathering and organising your paperwork:
bank statements, investment certificates, insurance policies, title
deeds, your will, and other financial documents.

To determine your
net worth, list and add up all your assets, that is, what you own
including cash, mutual funds, savings and investment accounts, valuable
personal possessions and the value of your home and subtract your
liabilities or what you owe, such as your mortgage, car loans and other
debt.

If your debts
exceed your assets, do not despair; that is the purpose of the
exercise. You now need to see where you can make adjustments; ideally,
your net worth should be increasing each year, even if it is just by a
small amount. Keeping track of your net worth on a regular basis,
annually, or bi-annually is a good indicator of how effectively you are
managing your money over time.

Set financial goals

Have you set short,
medium, and long-term financial goals? Are they still appropriate for
your current situation? Your short-term financial goals will consist of
what you want to accomplish in the coming year. This could include
saving for a car, or a vacation. Longer-term goals include putting a
down payment on a new home in three years, or planning for your
retirement in 10 years. If you are planning a family or have very young
children, you could start an education fund to cover school or
university fees. Prioritise your goals and assign them a value and a
target date.

Get out of debt

Getting out of debt
is another key step to taking control of your finances. List all your
debt, and prioritise; it is important to tackle the most expensive debt
with the highest interest rates first. Having your debt under control
gives you more freedom to do other things. It will take some sacrifice,
but it is worth the effort.

Create a budget

Once you know what
you owe, a budget will help you deal with your debt systematically.
Budgeting is one of the most important tools for financial security and
to plan ahead could mean the difference between achieving financial
freedom and experiencing financial failure. A good budget will help you
to plan and monitor your expenses so you can identify where your money
goes and where to cut back if necessary. If you don’t already have a
budget, try to make one, and stick to it.

Educate yourself

Improve your
knowledge of money matters through books, magazines, newspapers,
seminars, and by seeking professional advice. Whether your interest is
in learning how to manage your money, how to get out of debt or how to
plan for your children’s education, there is a plethora of information
that will guide you and put you in control of your finances, bringing
you closer to achieving your goals.

Establish an emergency fund

Saving is key to
financial success. If you don’t already have an emergency fund, think
seriously about building one. Try to have at least three to six months’
worth of living expenses in a safe, accessible,

interest bearing
money market account. If you are suddenly faced with unexpected job
loss, major car repairs, or medical expenses, you will be better
prepared to cope if you have this financial cushion to fall back on.

Try to develop a
strict habit of setting aside a minimum of 10 per cent of your income
each month for savings or investment purposes. You will be surprised to
discover that over time, even small amounts add up. Automate your
savings by putting a direct debit in place so that you won’t be tempted
to spend all your income.

Invest for the
future Make it a priority in 2011 to put some long term investments in
place. Many stocks continue to sell at a discount to their true value.
Inspite of market volatility, continue to invest in the stockmarket if
you have a long time frame, such as for your children’s education or
for your retirement. However, do pay attention to your asset allocation
and ensure that you are well diversified across the primary asset
classes including cash, bonds, stocks and real estate.

Do you have a retirement plan?

Did you add to your
retirement nest egg this past year? Every single year counts; indeed
many financial experts suggest that you may need as much as 70 per cent
of your pre-retirement income to maintain your standard of living after
you stop working. Most of your retirement income will have to come from
the money you set aside and invest today. If you haven’t done so
already, open a retirement savings account and in addition, start to
build an investment portfolio.

Have you made a will?

I know it sounds like a morbid way to start the New Year, but do you have a will or a living trust?

Putting your last
wishes down in writing should be a top priority, particularly if you
have dependants. Most parents have this on a ‘to do’ list but it often
gets left on the back burner. Knowing your children will be cared and
provided for should anything happen to you, will give you a huge sense
of relief. If you already have a will, it is a good time to review and
update it to make sure you have included any recently acquired assets
or new beneficiaries.

Give

Giving is a
powerful and effective way to change people’s lives for the better
whilst at the same time giving you financial freedom. Determine a cause
or charity that you would like to be involved with and identify ways in
which you can give back to the community.

Remember… it’s not all about money

Just one last bit
of advice: In all these money matters, do remember that the best and
most fulfilling things in life have nothing to do with money. Remember
to count your blessings, not just your money! May God grant you good
health, happiness, wisdom, security and peace in abundance in the year
2011 and beyond.

Happy New Year!