Free Money Finance

How I Did on My 2008 Money Resolutions

Last year I made a series of money resolutions for 2008 and I thought it would be fun (as well as a way to hold myself accountable) to review how I did. Here are the results:

Resolution: Increase net worth by at least 12.5%.

    Result: Nope -- missed it by a mile.

Resolution: Check our credit reports for accuracy. Need to do at least once this year.

    Result: Unfortunately, I missed 2008. I need to get on this.

Resolution: Check credit score.

    Result: Did this as part of the process when we almost bought a house. Our score was great!

Resolution: Complete estate plan.

    Result: Done.

Resolution: Complete 2007 tax return.

    Result: Did it, though we had a snag along the way.

Resolution: Update my wife on our finances. I do an annual PowerPoint report each summer for her.

    Result: Did it. (And she loved it!)

Resolution: Give a good percentage of gross salary as offerings (in addition to tithing).

    Result: Completed. Here are some of the places I supported.

Resolution: Continue my major investments rebalancing.

    Result: Did this in a MAJOR way ("thanks" to the dropping market) and focused on some low-cost funds that will help both my future returns and make tracking easier.

Resolution: Look for a new home.

    Result: Did this -- and almost bought a new one.

Resolution: Earn additional income.

    Result: I'm giving myself a partial accomplishment on this. I did earn extra income over and above my job, but it wasn't any more than the extra I earned in 2007.

Overall, I got most of the resolutions completed, but the big one (net worth) missed big-time. But I made some good moves and am hopefully now set up for a great 2009.

How about you? How did your 2008 money resolutions turn out?

Financial Resolutions for the New Year

The following is a guest post from Marotta Asset Management.

Every year many of us make New Year's resolutions and then can't follow through because we claim we're too busy. The most common priority--if another hour can be found in the day--is to spend more time with family and friends. The second one on the list is to find time for physical fitness. But given two extra hours, far too many of us just work that much longer on our backlog of pressing responsibilities.

This year, however, is different. Financial planning concerns very likely threaten to consume your life and ruin all your other New Year's resolutions. The tsunami of 2008 left your finances beached in a tree, and a plan to get back on track in order to meet your goals is imperative. You can't afford to spend time with family and friends and make it to the gym unless you have someone on your team watching out for your finances. Few of us are disciplined enough to accomplish what we need to do without help.

If you are young, you may not have had that much saved relative to your annual spending anyway. But if you are older than 40, what you save each year is small compared with what you already have invested. So growing that money is critical. And for both young and old alike, for every seven years you delay saving and investing, you cut in half the lifestyle you might enjoy in retirement.

Here are some suggestions. First, ask the right questions and stay the course until you've found the answers. Goals that are shared are ten times more likely to be acted on. Don't wait until you have everything set up to seek out accountability.

Second, make those goals concrete and then document them. Set your savings goals as a specific annual percentage of your adjusted gross income (AGI). We recommend saving at least 10% of your AGI in tax-free retirement accounts and another 5% toward retirement in taxable investments. If you are behind on your savings (over age 40 with less than five times your AGI in investments), you may want to save more in order to catch up.

Third, craft the best strategy to implement your goals, including prioritizing the appropriate retirement vehicles. We recommend investing just enough to get the entire match that your company's 401(k) plan offers first and then funding your Roth IRA accounts next. After these two, make certain you have enough nonretirement savings. By prioritizing your investment vehicles, you are deliberately putting your money into accounts that combine the greatest number of asset allocation choices with the lowest possible fees. Many company 401(k) accounts have such high fees and poor choices that they frustrate investors.

Fourth, automate your plan. Automating putting money in an employer-defined contribution plan is easy. Automating a taxable savings plan is just as painless. Most brokers offer an automatic money link between your investment account and your checking account. They also offer a monthly automatic transfer between the two accounts.

Finally, monitor your plan and rebalance your portfolio regularly. I recommend doing this halfway through the year after your June 30 statement.

Your plan must be comprehensive. Investment management may be at the core, but it is not the most critical element. Managing your investments must be done in the context of sound financial planning that you and an advisor monitor and review regularly. Financial planning includes retirement projections, figuring out how much to save and setting reasonable spending rates in retirement.

But an even more important element than financial planning is a comprehensive wealth management plan, which should include reasonable and appropriate insurance and liability coverage.

Perhaps the most critical component of wealth management in the new year will be tax management. With the potential for tax rates to fluctuate even more than the stock market, the value of tax management has never been greater. In addition to positioning your family's wealth to take advantage of all the possibilities, from Roth conversion to municipal bonds, you also will need help to contend with the plethora of changes in estate planning laws over the next few years.

Investment management, financial planning, wealth management and estate planning underline the need for integrated life planning. You can learn to enjoy life more, and find time for family and exercise, if you delegate the financial, tax and legal issues to trustworthy advisors.

How I'm Doing on My New Year's Resolutions

The Money Blog Network is doing a group writing project where we're all giving an update on how our New Year's resolutions are going one month after we've made them. For your reference, here are my money resolutions for 2008. And here's my update:

1. Increase net worth by at least 12.5%. My savings is on automatic, so I've done well on this one for January. As far as where the market will end the year -- that one's out of my control but will have a HUGE impact on where my net worth ends in 2008.

2. Check our credit reports for accuracy. Haven't done so yet this year.

3. Check credit score. Haven't done so yet this year.

4. Complete estate plan. This is the one I've been working on in January. We've seen the first draft (after selecting and contacting potential guardians) and are close to being done.

5. Complete 2007 tax return. All the paperwork is in my file. I now just need to assemble it and send it to my CPA.

6. Update my wife on our finances. I plan to do this in July. It's our annual "tradition" to do it then. ;-)

7. Give a good percentage of gross salary as offerings (in addition to tithing). I donated some stock this past month, so I'm well ahead on this resolution.

8. Continue my major investments rebalancing. This is one reason I gave away stock instead of cash -- it's part of my rebalancing plan.

9. Look for a new home. No one looks at homes in January in Michigan. ;-)

10. Earn additional income. I made my list this month -- now I need to get going on it.

Overall, I think I'm off to a good start. How about you? How are your resolutions coming one month later?

Here's what some other members of the MBN are saying about their resolutions:

• Mighty Bargain Hunter
• Five Cent Nickel
• Get Rich Slowly
• Consumerism Commentary
• No Credit Needed

Improving Finances a Top New Year's Resolution

Here's an article from MSNBC that says many people are resolving to get their finances in order in 2008 -- even more than those who are resolving to get in shape:

Some 67 percent of the 1,002 adults surveyed nationwide said that becoming financially fit is a top New Year's resolution, while 57 percent are committed to becoming physically fit in 2008.

So two-thirds of Americans are pledging to get their finances in shape, huh? I think I'll believe it when I see it. ;-)

But for those who are serious about getting their finances in shape, here are a few posts to get you started in the right direction:

• The 10 Best Money Moves You Can Make

• Why I Like Index Funds

• How to Get Rich in Three Easy Steps

• Poverty to Prosperity

My New Year's Money Resolutions

Here's a list of what I plan to accomplish in 2008 in the area of personal finances:

1. Increase net worth by at least 12.5% (this includes both saving and investing impacts.) We've been averaging over 16% for about 15 years now, but 12.5% has always been my goal. Maybe time to up this one, huh?

2. Check our credit reports for accuracy. Need to do at least once this year.

3. Check credit score. Something I've put off for too long.

4. Complete estate plan. Already started on this one -- have a lawyer and have selected guardians for our kids.

5. Complete 2007 tax return. An annual resolution, unfortunately.

6. Update my wife on our finances. I do an annual PowerPoint report each summer for her.

7. Give a good percentage of gross salary as offerings (in addition to tithing). I have an actual amount listed, but I'm leaving it off here. ;-)

8. Continue my major investments rebalancing. I will keep getting rid of old funds with high capital gains by donating them to charities while taking cash from income and replacing the amounts given with investment in index funds.

9. Look for a new home. Our search continues in earnest this year, so we may be moving in 2008 if we find the right place at the right price.

10. Earn additional income. Will try again to earn an extra $10k this year.

Top Money Resolutions for 2008

Money magazine lists the top money-related New Year's resolutions in its January issue. The magazine took a poll, and here are the percentages of people that claimed the various resolutions for this year:

• Pay down debt -- 33%
• Save for retirement -- 23%
• Build an emergency fund -- 11%
• Buy real estate -- 11%

The information also includes findings that 1 in 3 think they'll definitely achieve their top resolution but 51% think they may not have the money to make it happen.

I have no debt and my emergency fund is funded, but I'll fully fund my 401k again this year and I could buy some real estate (if we find the right house.) I'll share my specific resolutions later, but for now how about sharing yours? What do you resolve to do money-wise this year?

New Year's Money Resolutions and Net Worth Update

At the beginning of 2006, I committed to several money-related resolutions and promised to track my progress on Free Money Finance. Since my November update, I have invested in two 529 accounts (so take that one off the list) but didn't close the loop on updating our wills (though I have the name of a recommended lawyer and have contacted him.) So, technically, that's the only resolution I didn't hit this year. Not bad!

For 2007, I'm going to be doing something a bit different. I won't be stating my resolutions and then tracking them each month, but I will give a monthly update on my net worth status -- if it's up or down, why, what I'm doing to make it grow, etc. It seems like a more interesting topic to me and is exactly on target for what this blog is about (after all, my tagline is "grow your net worth".)

So to start out, let me detail where my net worth ended 2006. If anything, these numbers will be a bit low since I haven't yet received my final investment statements for the year, and I always have some capital gains from mutual funds. But they're close enough, so let's jump in.

The S&P 500 was up 1.26% in December, but I didn't do as well. I was flat (my net worth was up/down 0.00 % versus the previous month to be exact) due to the fact that I wanted to get in a big charitable contribution before the end of 2006 instead of letting it fall in January. So I made it and was flat as a result. That said, once the capital gains hit, I'll likely be up half a percent or so.

As for 2006, it was a good year. My net worth was up 18.2% -- a strong showing. That leaves me with a compounded annual growth rate of 16.5% since 1996 -- also not bad.

Who knows where 2007 will take me? I will keep saving, of course, but so much of my net worth is tied up in the stock market that I pretty much go as the market goes. If it's up, I'm up and if it's down so am I. Only time will tell which it will be.

The Top Money-Related New Year's Resolutions

I'm a bit behind posting this one, but there's so much good stuff tot talk about and only so many posts a day. ;-)

But here's a listing from Money magazine's January issue that lists the percent of people making financial resolutions who named each of the following as their top financial resolution for 2007:

• Saving more - 32%
• Paying down debt - 25%
• Making more income - 15%
• Spending less - 13%
• Investing more - 10%
• Saving for a large purchase - 4%

So let me help those of you who may have made these sorts of resolutions -- by pointing you to some resources here at Free Money Finance that can help you keep them.

Saving more:

• Best of Free Money Finance: Retirement Posts

Paying down debt:

• Best of Free Money Finance: Debt Posts

• Best of Free Money Finance: Credit Card Posts

Making more income:

• Best of Free Money Finance: Career Posts

• Best of Free Money Finance: College and Education Posts

• Free Money Finance Guide to Making More Money

Spending less:

• 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money

• FMF Saving Money Category

Investing more:

• Best of Free Money Finance: Investment Posts

• FMF Investing Category

How to Live Longer and Decrease the Chances You'll Use Insurance, Plus a Great List for New Year's Resolutions

Here are some thoughts from the wonderful book The Bogleheads' Guide to Investing (I LOVED the book -- see my rating for details) on how to improve the odds you won't need to use insurance. It's also a great list for New Year's resolutions and also serves as a list of steps to take to live longer. Their thoughts:

• Don't smoke.
• Exercise regularly.
• If you drink, limit yourself to two drinks a day.
• Wear seatbelts, and don't drive under the influence.
• Eat the right foods, and maintain the proper weight.
• Get enough rest.
• Get regular medical, dental, and vision check-ups.
• Keep a positive attitude, smile, and laugh a lot.

Here's how I score on these:

1. Don't smoke.

2. Exercise at least four times a week.

3. Don't drink.

4. Always wear a seatbelt, and never drive under the influence.

5. I am the proper weight -- I'll be working on part 1 of this in 2007.

6. What was that? I missed it -- I was dozing off. ;-)

7. I get a physical and vision test once every two years (my doctors' preferences) and a dental check up twice a year.

8. I HAVE to have a positive attitude to do this blog, don't I? ;-)

Seriously, if you are missing any of these in your life, consider making them a resolution for this year. You'll feel better and live longer as a result. And, after all, life is more important than money.

New Year's Money Resolutions Update through November 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of every month (see New Year's Money Resolutions Update through October 2006 for last month's update.)

This is my update for the month ending November 2006.

I've completed most of my resolutions this year and a couple of the others happen automatically every month (see last month's link above for details/specifics), so I'm only going to address the remaining issues in this update.

Here are the ones I'm still working on/made progress on this month:

• Net Worth -- The S&P 500 was up 2.40% in November, another healthy gain (man, I LOVE when the market keeps going up!!!!) My net worth jumped up 4.56% for the month. Yes, you read that correctly -- up almost 5% in the MONTH! The reasons: 1. I received my annual work bonus. 2. My employer has the ability, at its discretion, to make an additional contribution to my 401k. And they did -- at a very good amount. 3. The market was up big -- and I was up bigger. My oil stocks did very well this month. ;-) I'm now up 16.95% for the year and on track to be up 19.8% this year. Just four months ago, I wasn't doing that well, but then the market started to take off and it's been a great time since. I hope it keeps up!

• Sort Out College Savings -- I plan to take part (or maybe all) of the bonus mentioned above and put it into 529s for my kids. Now I just need to pick a plan.

• Update Will -- I got a reference on a lawyer from a trusted friend and I've made initial contact with him to start the process.

• Blog Goals -- November was my best month to date from a traffic standpoint, so things are still headed in the right direction and I'm still on track to hit my mid- to high-level numbers.

We're closing in on the end of the year and I've either completed every resolution or am closing in on them We'll see if I can get the last two done (I really have the college one done -- the resolution was to sort out the amount I needed to save) and make it 100% for 2006.

New Year's Money Resolutions Update through October 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006
• February 2006
• March 2006
• April 2006
• May 2006
• June 2006
• July 2006
• August 2006
• September 2006

This is my update for the month ending October 2006.

First, here's a list of the completed resolutions so far this year:

• Investment Review
• Earn Extra Income
• Complete Taxes
• Budgeting
• Retirement Number
• Get Spouse Up-to-Date on Finances
• Insurance Inventory
• Credit Check-ups

Here are the ones I'm still working on/made progress on this month:

• Net Worth -- The S&P 500 was up 3.15% in October, another healthy gain. I was up almost as much as my net worth went up 2.83% for the month. I'm now up 12.40% for the year and on track to be up 15.6% this year. Just three months ago, I wasn't doing that well, but then the market started to take off and it's been a great time since. I hope it keeps up!

• Giving -- We continued our giving to several projects this month per our budget.

• Fully Fund 401k -- It happens automatically every month!

• Sort Out College Savings -- My wife and I talked this issue over in detail one night. Since then, we've set our college savings number (what we want to have saved by the time our kids get into college) and how we're going to get there.

• Update Will -- No progress made in this area this month.

• Blog Goals -- October was my best month to date from a traffic standpoint (my next two were this past August and September), so things are still headed in the right direction and I'm still on track to hit my mid- to high-level numbers.

We're closing in on the end of the year and I have only one resolution left -- updating our wills. We'll see if I can get that one done and make it 100% for 2006.

New Year's Money Resolutions Update through September 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006
• February 2006
• March 2006
• April 2006
• May 2006
• June 2006
• July 2006
• August 2006

This is my update for the month ending September 2006.

First, here's a list of the completed resolutions so far this year:

• Investment Review
• Earn Extra Income
• Complete Taxes
• Budgeting
• Retirement Number
• Get Spouse Up-to-Date on Finances
• Insurance Inventory

Here are the ones I'm still working on/made progress on this month:

• Net Worth -- The S&P 500 was up 2.46% in September, another healthy gain. I was up almost as much as my net worth went up 2.08% for the month. I'm now up 9.57% for the year and on track to be up 13.2% this year.

• Giving -- We continued our giving to several projects this month per our budget.

• Fully Fund 401k -- It happens automatically every month!

• Sort Out College Savings -- No progress made in this area this month.

• Update Will -- No progress made in this area this month.

• Credit Check-ups -- Completed. I ordered my free credit report and all is well.

• Blog Goals -- September was almost as good as August (my best month yet). As such, I'm still on track to hit my mid- to high-level numbers.

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

New Year's Money Resolutions Update through August 2006

At the beginning of the year I committed to several money-related resolutions:

and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006
• February 2006
• March 2006
• April 2006
• May 2006
• June 2006
• July 2006

This is my update for the month ending August 2006.

I'm going to change the format a bit because I'm starting to get several resolutions completed. So I'll now list all the completed resolutions first, then give an update on ones I'm still working on.

Let's get started. Here's my August update.

Resolutions completed so far this year:

• Investment Review
• Earn Extra Income
• Complete Taxes
• Budgeting

Here are the ones I'm still working on/made progress on this month:

• Net Worth -- The S&P 500 was up 2.13% in August, a very healthy gain. I was up almost as much as my net worth went up 1.84% for the month. I'm now up 7.49% for the year and on track to be up 11.5% this year. Not bad.

• Giving -- We continued our giving to several projects this month per our budget.

• Fully Fund 401k -- It happens automatically every month!

• Retirement Number -- I did set my retirement number, then detailed how I set it. Now "all" I need to do is save like crazy! ;-)

• Get Spouse Up-to-Date on Finances -- I shared my PowerPoint presentation with my wife. She loved it! As expected, we discussed a few items and had several "to-dos" as a result of the meeting.

• Sort Out College Savings -- No progress made in this area this month.

• Update Will -- No progress made in this area this month.

• Credit Check-ups -- No progress made in this area this month.

• Insurance Inventory -- I completed this project by filming the garage and the outside. The tape is now stored in my desk at work.

• Blog Goals -- August was my best month yet. Not only did I get some big traffic from BusinessWeek and Yahoo, but I think most people came back from vacation as well. As such, I'm on track to hit my mid- to high-level numbers.

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

I Set My Retirement Number and Boy It's a Doozy!

Well, I finally took the time to set my retirement number as I've been planning to all year. And let me tell you -- it's big. REAL BIG!

Luckily, I have a good headstart since I've been maxing out my 401k for years and I have lots of time left to save (over 20 years). I have time to let the power of time and the power of compounding work for me.  Still, I have a long way to go. It's unbelievable how much you have to save to fund retirement these days.

When I set the number, I made some very conservative assumptions that made my retirement number higher including:

• I assumed no retirement support from Social Security.
• I retired at 65 (though I'd like to work longer).
• I set the return on my savings at only 6% -- an amount I think I can beat.

From there, I used five different methods to set my retirement number -- two I created myself and three I found on the web. Then I took an average of these five (and they did vary by a decent amount) and set that as my retirement number.

I suggest you do the same -- come up with a concrete number that you need for retirement -- and then start saving for it. Otherwise, how will you know what you need and what you should save to get there?

If you want some thoughts on retirement, check out these posts from Free Money Finance:

• How to Retire Rich: Use the Power of Compounding

• Save Now, Retire Rich

• 10 Tips to a Prosperous Retirement

• Free Money Finance Guide to Saving for Retirement

• Tips for a Great 401k

Now -- I need to set a college number for my kids!!!!!!!

New Year's Money Resolutions Update through July 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006
• February 2006
• March 2006
• April 2006
• May 2006
• June 2006

This is my update for the month ending July 2006.

Since I have several resolutions, not every one will need action every month. However, I plan to mention each one every month just to remind myself and all of you what I'm planning to accomplish this year.

Let's get started. Here's my July update:

• Net Worth -- The S&P 500 was up 0.5% in July, or basically flat. I did much better than that. My net worth was up 1.12% for the month. I'm now up 5.65% for the year and on track to be up 9.90% this year. Not stellar, but not bad.

• Giving -- We continued our giving to several projects this month per our budget.

• Fully Fund 401k -- It happens automatically every month!

• Investment Review -- Resolution accomplished.

• Earn Extra Income -- Resolution accomplished.

• Retirement Number -- No progress this month.

• Complete Taxes -- Resolution accomplished.

• Get Spouse Up-to-Date on Finances -- Still close to finishing my PowerPoint presentation for my wife. I thought I could get it done during my vacation, but it just didn't pan out that way. It's my key "to-do" for August.

• Sort Out College Savings -- No progress made in this area this month.

• Update Will -- No progress made in this area this month.

• Credit Check-ups -- No progress made in this area this month.

• Budgeting -- Resolution accomplished. During my vacation, I did have time to update our budget for the first half of the year and set it for the second half. The next budget update will be in December for 2007.

• Insurance Inventory -- After we cleaned the house on vacation, I did videotape the entire inside of the house. But then my battery konked out, and I had to recharge it. I never finished. All I have left to do is the garage and the outside, so I'd say I'm 75% completed with this resolution.

• Blog Goals -- Everyone seemed to stay on vacation in July -- it was another "ok" month, but not great. Still, I'm on track to hit my mid- to high-level numbers.

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

New Year's Money Resolutions Update through June 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006
• February 2006
• March 2006
• April 2006
• May 2006

This is my update for the month ending June 2006.

Since I have several resolutions, not every one will need action every month. However, I plan to mention each one every month just to remind myself and all of you what I'm planning to accomplish this year.

Let's get started. Here's my June update:

• Net Worth -- The S&P 500 was down 1.2% in June, which was not a great help to my net worth. However, I did make progress this month. My net worth was up 0.84% for the month. I'm now up 4.57% for the year and on track to be up 9.1% this year. Not a stellar performance, but at least I didn't go backwards.

• Giving -- We continued our giving to several projects this month per our budget.

• Fully Fund 401k -- It happens automatically every month!

• Investment Review -- I'm fairly done with this resolution for 2006. I've made the adjustments I planned at the start of the year, so we're set for now.

• Earn Extra Income -- Resolution accomplished.

• Retirement Number -- Still working on it.

• Complete Taxes -- Resolution accomplished.

• Get Spouse Up-to-Date on Finances -- Close to finishing my PowerPoint presentation for my wife.

• Sort Out College Savings -- No progress made in this area this month.

• Update Will -- No progress made in this area this month.

• Credit Check-ups -- No progress made in this area this month.

• Budgeting -- Now that the first half of the year is over, I need to adjust for the rest of the year.

• Insurance Inventory -- Planning on doing this in July.

• Blog Goals -- Everyone seemed to go on vacation in June -- it was an "ok" month, but not great. Still, I'm on track to hit my mid- to high-level numbers.

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

New Year's Money Resolutions Update through May 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006

• February 2006

• March 2006

• April 2006

This is my update for the month ending May 2006.

Since I have several resolutions, not every one will need action every month. However, I plan to mention each one every month just to remind myself and all of you what I'm planning to accomplish this year.

Let's get started. Here's my May update:

• Net Worth -- The stock market giveth, and the stock market taketh away. ;-)

The S&P 500 was up 1.6% five days into May, and I thought I was going to have a banner month. Then the bottom fell out. From its high on May 5, the index lost 5.2% before rebounding to "only" being down 2.7% for the month. Since the majority of my net worth is in the stock market, I went along for the ride. My net worth was down 1.93% for the month. I'm now up only 3.69% for the year and on track to be up 8.8% this year. That's not terrible, but it's a far cry from the 17.3% increase for the year I was looking at on May 1.

• Giving -- We continued our giving to several projects this month per our budget.

• Fully Fund 401k -- It happens automatically every month!

• Investment Review -- I set up all of my accounts to automatically invest at certain times during the month. I had a couple accounts doing this, but decided to make them all automatic. I also doubled the amount that automatically goes from my checking account to my investment account each month.

• Earn Extra Income -- I've made my goal as I surpassed $10,000 for the year this past month! Maybe I should have shot higher. Who knew I'd do so well so soon?

• Retirement Number -- I've run a couple different formulas and am very close at getting my number. And man o' man is it BIG!

• Complete Taxes -- Taxes are completed and put to bed. It's just record keeping for the next several months.

• Get Spouse Up-to-Date on Finances -- I had a reader write and said he wanted to share the family's finances with his spouse, but she didn't seem interested. So, he developed a PowerPoint presentation to summarize the data and showed it to her -- she loved it! I thought this was a great idea and I started my own presentation in May.

• Sort Out College Savings -- No progress made in this area this month.

• Update Will -- No progress made in this area this month.

• Credit Check-ups -- No progress made in this area this month.

• Budgeting -- Nothing required until July.

• Insurance Inventory -- Planning on doing this in the summer.

• Blog Goals -- May was the best month I've had to date, so I I'm doing well. I think I'll be in the mid- to high- forecast range for traffic and pageviews, in the low range for trackbacks, and past the high range (I'm already past them) for revenue and comments.

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

New Year's Money Resolutions Update through April 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006

• February 2006

• March 2006

This is my update for the month ending April 2006.

Since I have several resolutions, not every one will need action every month. However, I plan to mention each one every month just to remind myself and all of you what I'm planning to accomplish this year.

Let's get started. Here's my April update:

• Net Worth -- My net worth was up 5.73% from the end of December (on pace to be up  17.3% this year) and 1.41% from last month due primarily to good performance in the stock market. However it did benefit from my regular savings  efforts as well as contributions to my 401k as will be the case all year.

• Giving -- We continued our giving to several projects this month per our budget.

• Fully Fund 401k -- It happens automatically every month!

• Investment Review -- I developed a full-year plan for our investments. I sold a few things and allocated the cash to be invested throughout the year.

• Earn Extra Income -- All the extra income I had this month was blog income (which I count but donate to charity). Total extra income earned this month: $1,915. Total for the year: $8,942.

• Retirement Number -- Did lots of research on various methods to estimate our retirement number. You can see some of the options I've been considering at Setting Your Retirement Number.

• Complete Taxes -- Taxes are completed and put to bed. It's just record keeping for the next eight months.

• Get Spouse Up-to-Date on Finances -- No progress made in this area this month.

• Sort Out College Savings -- No progress made in this area this month.

• Update Will -- No progress made in this area this month.

• Credit Check-ups -- No progress made in this area this month.

• Budgeting -- Nothing required until July.

• Insurance Inventory -- Planning on doing this in the summer.

• Blog Goals -- My stats continue to put me on the high end of the goals I set for this year. And I've already reached one of the yearly goals on my high-side estimate -- my comments topped 2,200 for the year due to the Career Intensity giveaway I had going all month. Stats were up in almost every case even while I again (slightly) cut the number of posts I did throughout the month. I'll be making one more round of cuts this month to give me even more time to work on things like site maintenance, alliances, marketing, and the like.

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

New Year's Money Resolutions Update through March 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006
• February 2006

This is my update for the month ending March 2006.

Since I have several resolutions, not every one will need action every month. However, I plan to mention each one every month just to remind myself and all of you what I'm planning to accomplish this year.

Let's get started. Here's my March update:

• Net Worth -- My net worth was up 4.37% from the end of December (on pace to be up 17.5% this year) and 1.03% from last month due primarily to good performance in the stock market. However it did benefit from my regular savings efforts as well as contributions to my 401k as will be the case all year.
• Giving -- We continued our giving to several projects this month per our budget.
• Fully Fund 401k -- It happens automatically every month!
• Investment Review -- I did move some money into IRAs this month, though I haven't changed any of my investments.
• Earn Extra Income -- In addition to the blog income (which I count but donate to charity), I got paid for an article and a speaking engagement. Blog revenue was especially high since I had a couple long-term sponsors join the blog and they committed to multi-month agreements. I don't expect this to happen every month. Total extra income earned this month: $4,061 Total for the year: $7,027.
• Retirement Number -- No progress made in this area this month.
• Complete Taxes -- My taxes were completed and filed electronically. I also traded some emails with my CPA and got some tax guidance that I'll apply this year.
• Get Spouse Up-to-Date on Finances -- No progress made in this area this month.
• Sort Out College Savings -- No progress made in this area this month.
• Update Will -- I have two recommended lawyers (from friends) now. I hope to meet with one of them this next month.
• Credit Check-ups -- No progress made in this area this month.
• Budgeting -- Nothing required until July.
• Insurance Inventory -- Planning on doing this in the summer.
• Blog Goals -- My stats continue to put me mostly on the high end of the goals I set for this year. Stats were up in almost every case. It was my highest traffic, pageviews, comments, and revenue month ever for this blog. Trackbacks were even with last month, but below January. What's amazing about these numbers is that they've been accomplished while I've been cutting back on posts. In January, I averaged 7.42 posts per day, in February 6.61 posts per day, and in March 6.06 posts per day. Maybe the less people hear from me, the more they visit the site. ;-)

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do. However, I will be moving to an abbreviated version of this post -- one that focuses on my commentary more than anything else.

New Year's Money Resolutions Update through February 2006

At the beginning of the year I committed to several money-related resolutions and promised to track my progress on Free Money Finance. So far, I've posted updates at the end of the following months:

• January 2006

This is my update for the month ending February 2006.

Since I have several resolutions, not every one will need action every month. However, I plan to mention each one every month just to remind myself and all of you what I'm planning to accomplish this year.

Let's get started. Here's my February update:

• Net Worth -- My net worth was up 3.3% from the end of December and 0.7% from last month due primarily to good performance in the stock market. However it did benefit from my regular savings efforts as well as contributions to my 401k as will be the case all year. If I keep this pace up, my net worth should be up 20% in 2006 (I'd take it!!!!).
• Giving -- We continued our giving to several projects this month per our budget and even committed to one additional charity.
• Fully Fund 401k -- It happens automatically every month!
• Investment Review -- I have a set of funds I need to sell to get myself down even more after the great progress I made last month. I'll do that in March. One issue I'm facing -- some of the funds I'm in aren't the best, but they still have large capital gains attached to them if I sell, so I'm weighing those issues. (BTW, I've already made $589 on my DIS stock.) ;-)
• Earn Extra Income -- In addition to blog income (which I count but donate to charity), I got paid for some consulting services. Total extra income earned this month: $1,587 Total for the year: $2,966.
• Retirement Number -- No progress made in this area this month.
• Complete Taxes -- Everything was assembled and sent off to my CPA.
• Get Spouse Up-to-Date on Finances -- No progress made in this area this month.
• Sort Out College Savings -- No progress made in this area this month.
• Update Will -- No progress made in this area this month.
• Credit Check-ups -- No progress made in this area this month.
• Budgeting -- Nothing required until July.
• Insurance Inventory -- Planning on doing this in the summer.
• Blog Goals -- My stats continued to put me mostly on the high end of the goals I set for this year. However I still need to keep growing to hit them (BTW, Site Meter lost my data for one day -- where I had almost 2,000 visitors -- so February took a bit of a hit). ;-(

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

New Year's Money Resolutions Update, January 2006

If you're a regular reader of this blog, you know that at the beginning of last month I committed to several money-related resolutions and promised to track my progress on Free Money Finance. This is my first update in the series.

Since I have several resolutions, not every one will need action every month. However, I plan to mention each one every month just to remind myself and all of you what I'm planning to accomplish this year.

Let's get started. Here's my January update:

• Net Worth -- My net worth was up 2.6% from the end of December due primarily to good performance in the stock market. However it did benefit from my regular savings efforts as well as contributions to my 401k. Now if things only continue this way the rest of the year, it should be a great 2006! ;-)
• Giving -- We continued our giving to several projects this month per our budget.
• Fully Fund 401k -- It happens automatically every month!
• Investment Review -- I did make some good strides in this area, selling several stocks and mutual funds as my first move towards simplifying and rebalancing my portfolio. I'm down from 63 stocks/funds to 35 -- already reaching my goal in this one area. Now I need to reinvest the cash I have from selling those investments.
• Earn Extra Income -- In addition to the blog income below (which I count but donate to charity), I got paid for a personal finance article I wrote a month or so ago. Total extra income earned this month: $1,379.
• Retirement Number -- No progress made in this area this month.
• Complete Taxes -- I collected all the needed documents through January and will plan to get everything to my accountant sometime in mid to late February.
• Get Spouse Up-to-Date on Finances -- I talked to my wife about this resolution and she's on board -- and eager to get up-to-speed.
• Sort Out College Savings -- No progress made in this area this month.
• Update Will -- No progress made in this area this month.
• Credit Check-ups -- No progress made in this area this month.
• Budgeting -- Budget was completed for the entire year.
• Insurance Inventory -- No progress made in this area this month.
• Blog Goals -- Here's where I finished January:
• 49,474 visitors -- 1,596 per day
• 110,549 pageviews -- 2.2 per visitor
• 474 comments -- 15.3 per day
• 95 trackbacks
• $1,029 Revenue (which all goes to charity)

This puts me on the high end of the goals I set for this year, but in many ways January was a particularly good month. We'll have to see if it holds up in February.

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

Make a Resolution that Can Really Make a Difference in the New Year

Here are some credit score tips courtesy of ARA Content:   

Everyone makes New Year's resolutions. Among the most popular ones: to eat better, exercise more and work at losing that extra weight. Another healthy resolution you may not have thought of, but should, is to tone up your credit.

According to a recent survey conducted by the consumer advocacy group "Consumer Action," many Americans don't know how to define a good credit score. A credit score is a three-digit number (typically ranging from 300 to 850) that represents your level of risk to a creditor. Generally speaking, the higher the number, the more favorable your loan options may be.

A credit score is determined by a number of factors, including the length of credit history, payment history and the amount of debt currently owed, just to name a few. "Most people don't take steps to improve their credit scores until they already have marks on their record, but there's a lot you can do proactively" says Steve Ely of Equifax. He offers the following advice to people who want to clean up their credit in the New Year:

1. Pay off credit cards and other bills in a timely fashion. Late payments may be indicated on your credit file. In order to prevent this from happening, make sure you send out your bill payments early enough so that they'll arrive at their destination on time.

2. Always pay more than the minimum on your credit cards. If you only pay the minimum each month, it'll take you a long time to pay off all your debts. Carrying a high balance for a long time is a sign to creditors that you have stretched your budget thin.

3. Never let your balance exceed 50 percent of your limit. Keeping a low balance is a sign that you're able to responsibly handle your debts.

4. Monitor your credit report on a monthly basis. Regularly checking your credit report for changes you did not make is one of the best ways to combat identity theft. Equifax Credit Watch makes monitoring your report easy by automatically alerting you within 24 hours of key changes in your Equifax Credit Report -- like when someone tries to get credit in your name -- so you can act before serious damage is done.

Credit card fraud is a common type of identity theft, and Equifax Credit Watch can alert you to sudden changes in your credit card balances. Equifax Credit Watch also includes a copy of your Equifax Credit Report, access to live customer support, and up to $20,000 of Identity Fraud Expense Coverage with no deductible (certain limitations and exclusions apply) at no additional charge to you.

5. Keep older cards open -- this will add to your credit history.

6. Pay off your credit card balances as soon as possible. By regularly clearing out balances, you demonstrate to potential creditors that you are able to handle credit responsibly.

7. Shred everything! Particularly those credit card offers that come in the mail that you choose not to accept.

No one cares as much about your credit as you do. So take charge of it. For more information about Equifax monitoring services, log on to www.equifax.com.

Here are some additional thoughts from me on credit and debt:

• Get Out of Debt
• Yes, You Can Erase 15 Years of Debt in 14 Months
• Alarming Credit-Card Tricks
• You Can Beat Debt
• Nine Ways to Pay Off Debt
• How Many Credit Cards Should You Have?
• Five Dangerous Loans to Leave Alone
• The Eight Commandments of Credit Cards
• Fixing Bad Credit
• Escape the Credit Card Trap
• Four Credit Card Traps
• 8 Ways to Consolidate Debt

Six Steps to Personal Financial Independence in 2006

Though it's a bit past time to make New Year's resolutions, I still wanted to share this piece that's courtesy of ARA Content:

Every New Year's Day millions of Americans make resolutions to be more responsible about eating, exercising, smoking, etc. With the average per person credit card debt in America at $8,562 and total consumer debt topping $1.7 trillion, this New Year consider committing to financial resolutions by creating a "Declaration of Personal Financial Independence."

"Many people struggle with living paycheck to paycheck and getting further into debt each month," says James E. Stowers, author of "Yes, You Can … Achieve Financial Independence" and founder of American Century Investments. "The new year is a time to take a long look at how you're spending your time and money, and determine your financial priorities. Creating and signing your own 'Declaration of Personal Financial Independence' is a great way to put those New Year's resolutions into practice."

Stowers recommends the following six resolutions to help you become financially independent:

1. Determine To Make a Commitment

Ask yourself this question, "Who will take care of me financially, if I don't take care of myself?" Your answer to that question will determine your financial future. Are you expecting to have enough in your savings to be independent until the end of your life? Or are you expecting to be taken care of by the government, a relative or a charity? Can you count on one of them to be there for you when you retire? The best option is independence.

2. Identify Your Wants vs. Needs

Most of us have more wants than we have income. By assessing your wants and needs, you can budget for everyday occurrences and save for the most important "wants" on your list. Conduct a thorough analysis of your needs so you know your monthly budget, and then prioritize your wants by what value they bring to you. You may be surprised by the items that fall to the bottom of your list.

3. Pay Yourself First, Then Forget About It

Before you pay a single monthly bill, including your mortgage, rent or insurance, pay yourself first. A simple rule of thumb is to have at least 10 percent of your gross income saved and invested for the long term. Then, fight the temptation to spend any of your savings. Time is your greatest asset, so the sooner you start saving and the longer you keep your savings in place, the more financially secure you'll be in retirement.

4. Practice Responsible Credit Card Use

Change your view on your credit cards and you'll become a responsible user. Credit cards provide the convenience of not carrying cash in your wallet at all times. They shouldn't be used to buy now and pay much more and much later. Start imagining cash coming directly out of your pocket and concentrate on paying down the debt that keeps you a prisoner of your credit card balances.

5. Prepare for a Financial Emergency

Personal, property or business risks will be a reality for all of us at some time. If you don't provide for your emergencies, who will? Life is full of risks and financial pitfalls. By preparing for those risks now, you ensure the emergency does not have a profound impact on your lifestyle and financial goals. First, assess your current personal level of insurance coverage, evaluating its ability to cover your assets while allowing you to pay higher deductibles. Then, build an emergency reserve fund based on three to six months of living expenses. The reserve fund should remain readily available, safe and income-producing.

6. Get Your Money's Worth

For at least one month, keep a record of every purchase, listing exactly the item and the cost. At the end of the month review the list and ask yourself these two questions:

• Am I getting my money's worth?
• Am I satisfied with the way I'm spending my money?

If you answer no to either of these two questions, it's time to reassess your spending and saving habits. Your goal is to continuously refine the way you spend money until you are completely comfortable with your habits.

Stowers encourages each of us to create and sign a "Declaration of Personal Financial Independence" this New Year's Day.

"You cannot accomplish your goal of achieving financial independence by wishing. It takes doing. It takes being committed, and signing a 'Declaration of Personal Financial Independence' shows that you are absolutely determined to act," says Stowers.

"Yes, You Can . . . Achieve Financial Independence" is available by calling (800) 234-3445 or online at www.stowers-innovations.com.

Stay tuned to Free Money Finance for my resolution update. Towards the beginning of February, I'll let you know how I'm doing with the money resolutions I committed to this year.

Resolved: Stay Ahead on Taxes

Taxes, taxes, taxes. Yes, it's that time of the year. The previous year has ended, end of year statements are coming in, and filing a tax return is in your immediate future. There's no better time than now to prepare yourself.

This piece from Market Watch offers some suggestions on what you should be doing now to make the most out of this tax season. Here are their main tips:

January brings more than just resolutions. It brings obligations too. Jan. 17 is the deadline to finish paying your 2005 minimum tax obligation.

It's a new year. You're starting out fresh. There are new options you signed up for in your company's benefits plan. And you've just taken a quick look at your overall tax picture for 2005 to see if you must make estimated payments. If you learn your withholding is too low, it would be a good idea to raise it. Fill out a new Form W-4 showing either fewer allowances on line 5, or additional tax to be withheld from each paycheck on line 6.

How much did you put into your flexible spending account (FSA) at work for medical? It was deducted from your paycheck. You lose it if you don't use it, right? Well, great news! If you haven't used up the balance, you have until March 15 to get treatment and submit the receipts to the plan administrator. Note: although the law provides this option, not all companies are offering it yet. Check with your own benefits department.

I'll be posting on taxes all the way through April 15, so stay tuned. Personally, I try to have mine done early. I get my information into my accountant by mid-February and she gets it done 2-3 weeks later. Then I sit back and enjoy the frenzied pace of others as they wait until the last minute to complete their returns. ;-)

FMF recommends: H&R Block.  Do it yourself or have us do it.  It's never been easier.

Top 10 New Year Tax Resolutions

Here's a piece from the tax experts at H&R Block and their National Tax Advice Day website on the top 10 tax resolutions for 2006:

1.  I will take charge of my finances – Take control of your financial future by developing a detailed understanding of your income and expenses and by establishing clear financial goals.

2.  I will keep better records – When receipts get lost, it’s easy to miss out on deductions for charitable contributions, medical and educational expenses and business costs. This year, take a minute to develop a simple, fail-safe method for hanging onto to those annoying little slips of paper.

3.  I will save for retirement – Start now. It gets here sooner than you think. Not only will you be protecting your future, but you’ll enjoy tax benefits today.

4.  I will review my W-4 withholding – Fine-tuning your payroll deduction gives you the opportunity to increase cash flow, reduce year-end tax liability or boost your refund. Think about your financial requirements and objectives and take command of your paycheck.

5.  I will file my taxes electronically – Whether you do it yourself or rely on H&R Block’s experienced tax professionals, filing electronically cuts tax preparation time, speeds your refund and lessens the likelihood of an error. With do-it-yourself options like hrblock.com and TaxCut software and TaxCut Online programs, you can take advantage of built-in questions, checklists and safeguards, and even have your return reviewed by a tax professional.

6.  I will know my tax rights – Because the IRS will allow taxpayers to amend returns filed in any of the prior three years, consider taking the free Double-Check Challenge: An H&R Block tax professional will check your past three tax returns to ensure that no deductions or credits were overlooked, the right filing status was claimed and the tax calculated correctly.

7.  I will purchase a home – Buying a home can be one of the most positive and far-reaching financial decisions you will make. Not only are you building equity in an asset that typically increases in value, but you’ll reap a number of benefits and deductions at tax time.

8.  I will start saving for my child's education – In 15 to 20 years, it will take an estimated $170,000 to $230,000 to finance your child’s college tuition and living expenses, depending on the type of school they choose to attend. So get started now. There are a wide range of college savings plans out there, and even a small regular contribution will grow and compound dramatically over time.

9.  I will claim my education credits for classes – The federal government has created several important credits and deductions designed to help defray the cost of higher education. Talk to a tax or financial professional about how these options might help you.

10.  I will deduct my student loan interest – Provided you fall within certain income guidelines, the IRS allows you to deduct the interest paid on any loan used exclusively to pay for education expenses (including room and board) for yourself, your spouse or a dependent.

Here's where I net out on the top 10:

1. I'm got control of my finances. ;-)

2. I keep good records already. :-)

3. I'm saving for retirement by maxing out my 401k.

4. I have my W-2 tuned.

5. I've filed my taxes electronically for the past few years. It's the best way to get the fastest refund possible.

6. I know my rights, but good suggestion on checking with a tax advisor -- they may be able to save you some money.

7. I already own a home.

8. I'm already saving for college for my kids -- though I need to sort out our college savings plan this year.

9. I don't have anything to claim at this point.

10. No student loan interest for me. No interest of any kind, for that matter.

One last suggestion: H&R Block.  Do it yourself or have us do it.  It's never been easier.

New Year is Perfect Time to Check Your Insurance Coverage

Several of the New Year's resolutions posts that I've done have suggested that you resolve to review your insurance costs in the new year. For examples, see these posts:

• Seven Steps to Start 2006 on the Right Financial Foot
• Ten Tips for a Prosperous 2006 -- and Beyond
• Financial Resolutions
• Resolutions for 2006

And I even have my own insurance-related resolution.  As such, I thought this piece from USA Today titled New Year is Perfect Time to Check Your Insurance Coverage was a perfect one to share with you. Here's the introduction:

As you make your plans for 2006, take a moment to think about all the things that could go wrong in the next 12 months. Fire. Theft. Untimely death. Once you've completed this gloomy exercise, review your insurance policies. There's a good chance that you're not adequately prepared for misfortune.

A recent survey found that millions of Americans are underinsured in several critical areas. But the study also found that many of them are paying for coverage they don't need. The survey was conducted by Trusted Choice, a group of insurance agencies and financial firms.

Ok, now that you're scared to death (that you don't have enough coverage) and mad as heck (that you've been over-paying), here's a list of places where USA Today says you may be underinsured:

• Homeowner's insurance.
• Coverage for valuables.
• Life insurance.

Here's where you're probably over-paying:

• Update your policy if a young driver moves out.
• Skip baggage and flight insurance.

My thoughts:

1. I keep a pretty close eye on my house insurance and communicate annually with my agent. It's a big asset and I want to make sure it's protected.

2. As far as coverage goes for valuables, let me say two words: engagement rings. If yours is worth a ton, be sure it's covered.

3. I updated my life insurance a few times over the past several years. kept the same rate but got longer terms -- despite the fact that I was older than when I had previous policy.

4. There are lots of other ways to save on insurance costs. See these posts for details:

• 50 Ways to Trim Your Budget, Part 4: Personal Insurance and Retirement Costs
• Suze Orman's Advice on Health and Disability Insurance
• Suze Orman's Take on Auto Insurance
• The Ins and Outs of Renter’s Insurance

Ten Things to Stop Doing in 2006, Part 5

Here's part 5 of a piece from Bankrate listing ten things to stop doing in 2006:

9. Stop the status quo. Find your way around the obstacles that are keeping you from your goals.

10. Stop missing out on smelling the roses.

I hope none of you out there are so paralyzed by having to make an investment decision that you aren't doing anything, but if you are, check out Getting Rich is Simpler than You Think and all the associated links. It should lead you in the right direction.

And I'm in total agreement with the idea of taking time to smell the roses. Especially since I'm a rose grower myself. ;-)

Free Money Finance recommends Emigrant Direct.

Ten Things to Stop Doing in 2006, Part 4

Here's part 4 of a piece from Bankrate listing ten things to stop doing in 2006:

7. Stop identity theft.

8. Stop phishing.

Identity theft is a topic that (unfortunately) will continue to be in the financial news for quite some time. Here are some of my posts on the topic that will help you combat this evil:

• Let It Rip
• Identity Theft is Worse than You Think It Is
• ID Theft: It's Only a Matter of Time
• Consider Security when Downloading Bank Information
• Don't Get Hooked by a Crook
• Online Banking is Still Safe

Click here to read part 5 of this series.

Free Money Finance recommends Emigrant Direct.

Ten Things to Stop Doing in 2006, Part 3

Here's part 3 of a piece from Bankrate listing ten things to stop doing in 2006:

5. Stop counting on Social Security.

6. Stop leaving checks in your mailbox.

My thoughts:

1. I'm counting on NOTHING from Social Security. If I get $1, that will be $1 more than I expect.

2. We still leave checks in our mailbox, but we don't put up our red flag. We get mail every day anyway, so the mailman already stops at our box -- no need for the flag.

3. For more information on saving for retirement, see these links:

• The World’s Best-Kept Retirement and Investment Secret
• Getting Rich is Simpler than You Think
• 10 Tips to a Prosperous Retirement
• How Average Joes Can Retire Rich

Click here to read part 4 of this series.

Resolutions for Shaping up Finances

Well, everyone else has offered their money resolutions for the new year, now it's USA Today's turn. Here are the highlights along with links to related posts I've written:

1. Save more for retirement.

For more information see:

• 10 Tips to a Prosperous Retirement
• How Average Joes Can Retire Rich
• 10 Things You Should Ask Yourself About Retirement

2. Keep up on your federal benefits.

3. Save energy.

For more information see:

• 25 Extreme Energy-Saving Tips
• Energy Savings Tips from Energy Star
• Cut Your Fuel Bills

4. Beware the AMT.

For more information see:

• Lawmakers May Run Out of Time for Tax Fix
• 10 Big Tax Deductions Too Many People Miss
• Unlucky 7: The Top Taxpayer Mistakes

Seven Steps to Start 2006 on the Right Financial Foot

Here's a resolution-related article from Dallas/Ft. Worth Texas fee-only financial planner Steve Blankenship titled Seven Steps to Start 2006 on the Right Financial Foot. I'm posting a summary as well as links to posts written on corresponding topics so you can get additional information/ideas:

Tip #1. Get Energy Efficient. See: Energy Savings Tips from Energy Star

Tip #2. Rebalance your Investment Portfolio. See: Reviewing and Rebalancing Your Portfolio, Time to Rebalance Your 401(k)

Tip #3. Increase your Retirement Plan Contributions. See: 10 Tips to a Prosperous Retirement

Tip #4. Conduct a Review of your Property and Casualty Insurance with your Agent or Insurance Company. See: Buying Term Life Insurance

Tip #5. Watch out for Diversification. See: Diversification is for Amateurs

Tip #6. Have your Estate Documents Reviewed. See: Benefits of a Will

Tip #7. Develop a Spending Plan. See: Three Ways to Track Your Spending

Ten Things to Stop Doing in 2006, Part 2

Here's part 2 of a piece from Bankrate listing ten things to stop doing in 2006:

3. Stop running up credit card balances.

4. Stop using variable rate debt.

I'm going to combine my comments into one on this set: Get out of debt. Credit card debt for sure, but all debt if you can afford it.

I know there are those who argue that mortgage debt is fine as long as it's managed, but my personal point of view, and what I've seen work in my life, is to have no debt at all -- mortgage or otherwise. Once you get to that point, you can significantly grow your net worth. Of course the keys to eliminating a mortgage require that you buy a house you can afford (for more on this topic, also see More on Buying a House You Can Easily Afford and Comments: Buy a House You Can Afford) and then sacrifice spending on other items for several years until you get it paid off. Most people don't want to do this.

Here are some posts on credit cards and debt that might help you get/stay out of debt:

• 8 Ways to Consolidate Debt
• Four Credit Card Traps
• Escape the Credit Card Trap
• Get Out of Debt

Click here to read part 3 of this series.

Free Money Finance recommends Emigrant Direct.

Ten Things to Stop Doing in 2006, Part 1

Here's a great twist on the resolution theme from Bankrate. It lists ten things to stop doing in 2006. I'll cover a couple suggestions at a time to minimize length of the post and allow me a chance to comment. Here's part 1:

1. Stop spending more than you make.

2. Stop living paycheck to paycheck.

My thoughts:

1. Spending less than you make is not only a good tip, it's the single-most effective way to grow your net worth. Without doing this, you can't put money into a 401k, invest in the market, or do any of the other things that will benefit you financially.

For more on this topic, see these posts:

• Comments: Spend Less than Your Earn
• The Best Financial Advice I Can Give, Part 2
• It's Not What You Make, It's What You Spend
• Michael Jackson and More: It's Not What You Make, It's What You Spend
• It's Not What You Make, It's What You Spend, Part 3

• 4 Ways to Get Spending under Control

2. An emergency fund is vital to keep you from going into debt (or going further into debt) when an unplanned financial need arises. I just had one last night -- a pipe connection to one of our sinks gave out and spewed water all over the place. Thanks to my emergency fund, I was able to get a plumber to fix it without going into debt.

This is also the reason I regularly recommend Emigrant Direct. It's an excellent place to park your money and earn a good bit of interest (comparatively) while it's waiting to be used.

Click here to read part 2 of this series.

Ten Tips for a Prosperous 2006 -- and Beyond

What would Free Money Finance be without Suze Orman contributing to our resolution-o-rama here? Not nearly as exciting a place to be -- I'm sure of that!

So without further ado, here are Suze's ten tips for a prosperous 2006 (with posts from Free Money Finance added as appropriate):

1. Play the Match Game. FMF: How Much Goes in the 401k?

2. Limit Your Company's Stock in Your 401(k).

3. Go for a Roth IRA. FMF: Tough Financial Choices, Part 2: 401k versus Roth IRA

4. Dump Expensive Funds. FMF: Getting Rich is Simpler than You Think

5. Protect Your Home. FMF: Suze Orman on Home Insurance

6. Get UnARMed.

7. Dump 'Universal Default' Credit Cards. FMF: Four Credit Card Traps, Escape the Credit Card Trap

8. Watch Your Identity. FMF: Financial Resolutions for 2006: Credit Check-ups, Identity Theft is Worse than You Think It Is

9. Insure Your Family's Well-Being. FMF: Insuring Your Spouse

10. Values Are Your Ticket to True Prosperity. FMF: Making the Most of Your Time

Financial Resolutions

The resolution posts keep coming...and coming...and coming. For some of the past ones, see these links:

• New Year's Money Resolutions Summary
• New Year’s Financial Resolutions You May Want to Consider
• 10 New Years Money Resolutions

Here's Money Magazine's financial resolution suggestions:

1) Get out of debt.

2) Stash the Cash.

3) Don't wait! Consolidate.

4) Beef up your 401(k).

5) Reevaluate your insurance.

All good tips. As I've noted, these resolution articles tend to focus on simple and basic money suggestions -- some of the best ideas out there for growing your net worth.

I've written on these topics as well, so if you need more information, you may be interested in these:

• 8 Ways to Consolidate Debt
• Get Out of Debt
• Financial Resolutions for 2006: Create Insurance Inventory
• Financial Resolutions for 2006: Fully Fund 401k

Resolutions for 2006

More resolutions!!!!! Have you set yours yet? Here are resolutions for 2006 as suggested by USA Today (followed by some on my posts dealing with each suggestion, where appropriate):

• Check your credit report. See Credit Check-Ups.
• Update your insurance. See Insurance: What You Need and What You Don't, How to Avoid Skimping and Overspending on Your Policy
• Make a money disaster kit. See Financial Emergency Kit
• Set up a living will and pick a medical advocate. See Benefits of a Will.
• Get FREE money! See Don't Pass up Free Money in a 401(k)
• Get money tax free! See Tough Financial Choices, Part 2: 401k versus Roth IRA
• Add 1% to retirement savings. See 11 Ways to Make the Most of a Year-End Bonus
• Pay off your highest-rate credit card. See Get Out of Debt
• Start a Christmas fund.

I haven't written on the last one yet. Maybe this year. ;-)

10 Resolutions to Fix Your Financial Life

Well, we're now into the new year, but as long as I keep finding good resolution material to post on, I'm going to keep it coming. It's pretty basic stuff, which is often the best financial advice there is.

Here's Money Central's 10 resolutions to fix your financial life (after each of their suggestions, I've listed free Money Finance articles that give additional information/perspective on that resolution):

Resolution No. 1: Set up a system. See Three Ways to Track Your Spending.

Resolution No. 2: Bank online. See Online Banking is Still Safe.

Resolution No. 3: Track everything financial online.

Resolution No. 4: Get out of debt. See Get Out of Debt, Part 1.

Resolution No. 5: Create a budget. See Why do Millionaires have Budgets?

Resolution No. 6: Review your 401(k) plan. See How Much Goes in the 401k?

Resolution No. 7: Check your insurance coverage. Find out if you have too little or too much. See Insurance: What You Need and What You Don't, How to Avoid Skimping and Overspending on Your Policy.

Resolution No. 8: Check your estate plan. See Benefits of a Will.

Resolution No. 9: Make new goals. See my New Year's Money Resolutions Summary.

Resolution No. 10: Create a contact list.

Goal-Setting for 2006

Here's an article from Marketwatch that discusses some financial goals we all should consider for 2006. There's lots of fluff in here too, so I'll just give you the good stuff:

• Save your next pay raise.
• Plan for the worst.
• Cut the fat.
• Increase your charitable contributions.
• Keep money's place in your life in perspective.

My thoughts:

1. Good advice on saving the pay raise. Here's that source of savings that many people claim they "just don't have."

2. If you don't have the proper insurance, get it -- at least to cover disasters like a fire, death, or disability.

3. You know how much I like saving money. I have tons of ideas (and more to come) in the "saving money" category of this blog. Check it out.

4. I also post a lot about giving. See the "giving" category for a list of posts.

5. Yes, many things are more important than money, and time with your family is one of them. Be sure to make an investment in this area in 2006.

New Year's Money Resolutions Summary

For those of you who haven't noticed, I've been posting my New Year's Financial Resolutions at Free Money Finance. Here's a listing of what I'm committing to for 2006:

• Net Worth
• Giving
• Fully Fund 401k
• Investment Review
• Earn Extra Income
• Retirement Number
• Complete Taxes
• Get Spouse Up-to-Date on Finances
• Sort Out College Savings
• Update Will
• Credit Check-ups
• Budgeting
• Insurance Inventory
• Blog Goals

I'll be reporting on my status with these at the end of every month, so stay tuned to see how I do.

Financial Resolutions for 2006: Create Insurance Inventory

For years I've been meaning to do this and haven't done so yet. So I'm making it a resolution here and with you all keeping me committed, I will do it this year!! The task? I need to create an insurance inventory of my house.

What is this you may ask? It's simply a listing of all the property in (and including) your house. It is to be used in case of damage or destruction of that property (like a fire, tornado, etc.) to show the insurance company what you owned so you can get everything replaced to the fullest extent of your policy. If you don't have one of these, you're relying on: 1) your memory -- and you will forget things, even significant things, and 2) the good graces of the insurance company to fully reimburse you.

Wait! Did I say "good graces", "insurance company", and "fully reimburse" in the same sentence? :-) I think you know what I mean.

You can create a home insurance inventory on paper, list it on your computer, take pictures, take video or use any of the aforementioned options in combination. If you really want to go hog wild, you'd make copies of receipts for your most expensive items as well. Finally, you need to keep your list/pics/video and any receipts in a place other than your home -- like in a safe deposit box -- for safe-keeping and to have in case anything happens to your home. (That's the whole point of the list, isn't it?)

Personally, I plan to use video. If a picture is worth a thousand words, 10 minutes of tape should be worth at least the replacement of everything I own.

Financial (and Blog) Resolutions for 2006: Blog Goals

I've already listed all my financial goals for 2006 and now that I've reported my blog stats for 2005, it's time to set blog goals (and the finances that go along with them) for 2006.

It's hard to predict what blog traffic, pageviews, and the like will be given that this blog is still relatively new (as is blogging as a whole), so I'm going to estimate low, medium, and high goals for 2006. The low numbers will be the lowest I can realistic see this blog generating, the medium goals will be what I'd most likely expect to happen, and the high being goals will be ones that currently seem to be the outer limits of what I can reach. Here are my estimates for each scenario along with the assumptions listed:

Low Estimate

• 365,000 visitors -- 1,000 per day
• 657,000 pageviews -- 1.8 per visitor
• 1,460 comments -- four per day
• 800 trackbacks
• $3,870 Revenue

Medium Estimate

• 566,700 visitors -- Start at 1,000 per day, grow 100 per day per month
• 1,133,400 pageviews -- 2.0 per person
• 1,875 comments -- Five per day
• 900 trackbacks
• $5,500 Revenue

High Estimate

• 728,060 visitors -- Start at 1,000 per day, grow 180 per day per month
• 1,601,732 pageviews -- 2.2 per person
• 2,190 comments -- Six per day
• 1,000 trackbacks
• $7,100 Revenue

Just as a reminder, all the revenue from this blog goes to charity.

I'll be updating my results monthly, so stay tuned to see how I do.

Star Money Articles: Resolutions Abound

As you all know, I've been posting my 2006 financial resolutions here Free Money Finance, but I'm not the only one doing that from around the blogosphere.

Here are a few others you should check out:

• All Things Financial has a GREAT post on Making Financial Resolutions for 2006. You HAVE to check this post out. (BTW, several links in it are mine.) ;-)
• Consumerism Commentary is doing a bit of year-end review/2006 planning as he reviews his Investment Holdings. Check it out to get a sneak peek into his performance.
• Blueprint for Financial Prosperity takes a bit of a different approach -- instead of looking forward, he's looking at his best articles of 2005. There's some good stuff here -- you should be able to make your 2006 plans based on what he's got to share.

Comments: Financial Resolutions for 2006: Get Spouse Up-to-Date on Finances; Different Perspective

Here's a comment to my post on Financial Resolutions for 2006: Get Spouse Up-to-Date on Finances that offers a different take on the issue of getting a spouse up-to-speed on your financial situation:

One sentence you wrote struck me: "Then if something happens to me, she shouldn't miss a beat financially." I used to think that too, but life gets in the way and I can never sit down with her and really dig into the topic. (I'm a 9-to-5er; she's a nurse on a night schedule. So it's very easy for us to find better things to do in the little time we have together than talk finances.)

So I've changed my thinking a little bit. I know that my wife would be completely capable of managing her own finances if I were gone - probably not as passionately and as in-depth as I do, but she would do fine. But surely she would do things differently, to better suit her own depth of understanding, time constraints, etc.

So I've settled for making sure that if I die, rather than just picking up where I left off, she has tools in place so that at least she can understand what I've tried to build for us. She may not manage the checkbook in the same way I do, but I've made my processes clear enough that she can understand and modify to her own tastes. She may not know the ins and outs of our homeowners insurance policy like I do, but my files are well organized so she can get the documents and read them herself. And most importantly, I try to talk to her about my financial philosophies and principles.

At this point in my life, that is good enough for me. There's no doubt in my mind that if I died, it would take an investment of her time to get comfortable with our finances. But I've made her familiar enough that at least now she "knows what she doesn't know" so to speak, and has an understanding of where to go to ask the questions.

That's really where I'm headed with my resolution. I didn't mean that I need to plan for my wife to manage things exactly as I do. By "not missing a beat", I mean that she needs to know where my files are, what they contain, the passwords to key financial documents, etc. I need to get to where this commenter is in the last paragraph. That's my resolution for this year.

Free Money Finance recommends Emigrant Direct.

New Year’s Financial Resolutions You May Want to Consider

Here's a piece I wrote three years ago for a national magazine. I thought it might give you some ideas as you work on your financial resolutions this year.

Where appropriate, I've added in links to other posts on Free Money Finance to provide more information on the topics. Here goes:

Every New Year, millions of people resolve to better their lives. Many pledge to significantly improve their finances. As with other popular resolutions such as stopping smoking or losing weight, the key is to have a plan and stick to it. Try these simple steps to get in shape financially:

Create a spending plan — Determine your income and expenses for each month by reviewing your checkbook, bank statements, and receipts for the last year. Also, track your cash spending for 30 days, adding expenditures to the proper expense category. Record actual results regularly and update your plan quarterly. This will reveal where your money is being spent and provide information you need to manage it correctly.

For more information:

• Know and Control Your Spending
• Why do Millionaires have Budgets?
• Three Ways to Track Your Spending

Spend less — Spending less is easier than earning more, so look for opportunities to save money. Clip coupons, buy off-season, avoid impulse buying, and stop “cruising the mall.” Stop the small “leaks” of money; saving $2 a day on snack breaks at work yields $500 a year.

For more information:

• 13 Ways to Live Well on Less
• Why It Pays to Live Within Your Means
• Super Saver-Tips To Save $1,300

Create an emergency fund — Emergencies arise. Cars break down, ankles are sprained, and jobs are lost. Experts suggest you set aside three to six months of living expenses as a regular reserve. This fund will cover those inevitable, unexpected costs and keep you from borrowing money when they occur. This is why I recommend Emigrant Direct. If you don't have a savings account set up with them yet, now's the time to set one up.

For more information:

• Where to Save Emergency Cash
• Financial Emergency Kit
• Star Money Article: Why an Emergency Fund is Important

Eliminate debt — Paying off a credit card charging 17 percent annual interest is equivalent to investing money with a before-tax, guaranteed return of almost 20 percent. More than half of Americans have $7,000 or more of revolving credit card debt. Eliminating this debt saves more than $1,000 per year.

Financial expert Dave Ramsey recommends a “debt snowball”—reallocating payments from retired debts to existing loans until all debts are consumed.

For more information:

• 8 Ways to Consolidate Debt
• Four Credit Card Traps
• Escape the Credit Card Trap
• Don't be Bullied by Debt Collectors

Start saving now — Saving early for long-term expenses such as retirement or college allows you to capitalize on the most important investing force: time.

Multiply your efforts by using employer and government sponsored vehicles such as a 401k, IRA, and education IRAs.

For more information:

• 10 Easy Ways to Stash Away Thousands
• How Much Goes in the 401k?
• 10 New Years Money Resolutions, Part 1 (Save More Money)
• Saving for College -- Fast

Get a will — A will can ensure your assets will be divided according to your wishes, save thousands in taxes, and allow parents to designate their children’s caregivers. A simple will usually costs less than $200 and can be modified as your life changes. A “simple” will can be complicated for the average person and a do-it-yourself kit is not a bargain if something’s missing. Use a lawyer instead.

For more information:

• Benefits of a Will
• Financial Resolutions for 2006: Update Will

Give — Try to contribute something from each paycheck to your local church or charity. Remember, you’re rich compared to most of the world. Besides, giving helps focus on others and keeps finances in perspective—not letting them become an all-consuming part of our lives. Helping others meet their daily needs is a feeling no money can buy.

For more information:

• Why Give? Because It's Investing
• Give Smart
• Can't Give Money? There are Other Ways to Support Charities
• A Thought on Giving from David Bach
• The Power of Giving
• Five Tips to Make Your Donations Go Farther

Start working today on these suggestions, and within a year you’ll be well on your way to achieving the financial fitness you’ve always desired.

10 New Years Money Resolutions, Part 10

Here's part 10 of a series from Money magazine that lists their 10 New Years Money Resolutions:

Resolution 10: Craft a long-term plan

You've set the perfect investment plan in motion. But over time, as markets rise and fall, that ideal allocation will get out of whack. The solution: Get back on course by periodically selling some winning investments and buying more of your laggards.

1. Make it routine.

2. Get a before and after shot.

3. Fix your mix.

My thoughts:

1. I need to look at rebalancing my portfolio when I evaluate my investments this year. I haven't done it for awhile.

2. It will help that I'm going to be reducing my number of holdings this year.

3. For more investment-related posts, see these links:

• Kidding Around: A Capital Gains Idea
• Fund Indexers, Take (Another) Bow
• Part-Time Investing
• 4 Habits of Successful Investors

10 New Years Money Resolutions, Part 9

Here's part 9 of a series from Money magazine that lists their 10 New Years Money Resolutions:

Resolution 9: Cut your taxes

Americans routinely let many valuable tax breaks go unclaimed. For instance, a 2002 government study found that up to 2.2 million taxpayers overpaid, by an average of $438, because they claimed the standard deduction instead of itemizing.

Here's how to hold on to what's yours.

1. Invest in an accordion file.

2. Take the write-offs.

3. Maximize pretax savings.

My thoughts:

1. We keep a file for all our tax-related receipts each year. We drop receipts in the folder throughout the year and when we get ready to do our taxes, everything's ready. It's a great system.

2. I use a CPA to do my taxes. It's worth the expense in the time it saves me. Not to mention the headache.

3. As I've mentioned before, I fully fund my 401k. It gives me the maximum tax advantages this year and builds lots of (really good) savings for the future.

4. Here are some more posts I've written on the subject of taxes:

• Property Tax Tip
• An Alternative to Increasing Income Taxes?
• 5 Audit Red Flags
• 7 Big Tax Changes Money Central Wants to See, Part 1

Click here to read part 10 of this series.

10 New Years Money Resolutions, Part 8

Here's part 8 of a series from Money magazine that lists their 10 New Years Money Resolutions:

Resolution 8: Get healthy

These days the classic New Year's get-healthy resolution -- shed those extra 10 pounds, kick the nicotine habit, dust off the old gym membership card -- has been joined by a new one: Lower those out-of-pocket health-care costs.

In this case, one action plan will help you reach both goals, since adopting healthier habits throughout the year should automatically trim your medical bills as well.

1. Take small steps (But lots of them).

2. Get free help.

3. Reap the rewards.

My thoughts:

1. What a great deal -- get healthier AND save money! Save on coffee costs, cigarette expenses, insurance premiums and more!

2. I started bike riding a couple years ago and really committed to it last year (I rode over 4,300 miles from December 2004 through October 2005 -- but I started training for the season way, way too early). This year, I'm working more on cross-training during the off season and will get back on the bike in March. It's a great way to stay in shape and have lots of fun (I ride 100-mile events with a team of riders. We raised almost $50,000 for charity last year.)

3. Here are some more Free Money Finance articles related to this topic:

• Stop Smoking -- It's Killing Your Finances
• Comments: Stop Smoking
• Stop Smoking, It's Killing the Nation's Finances

Click here to read part 9 of this series.

10 New Years Money Resolutions, Part 7

Here's part 7 of a series from Money magazine that lists their 10 New Years Money Resolutions:

Resolution 7: Free up more time

Making time for yourself and your family is the top goal for 2006, according to a MONEY poll. Lack of time is really two problems: You probably are too busy, and you aren't making the best use of the spare time you have. The action plan below will help you address both.

1. Outsource a task (or two or three).

2. Automate bill paying.

3. Take a vacation.

4. Relax, really.

My thoughts:

1. I've written a bit about the value of time. You can see these posts at the following links:

• Simple Ways to Save Hours of Your Time
• What's Your Time Worth?
• Comments: What's Your Time Worth?; An Opinion

2. We have four vacations built into our calendar every year: three visits to family around the U.S. and one visit from my parents. We've done this every year for several years, so it's a built-in time of "relaxation" (if you can call them that). ;-)

3. In addition, this year we want to take a special vacation with our kids. Since we live only a few hours from Chicago, we've thought about a vacation there to see all the museums, the aquarium, etc. My wife and I did that alone a few years ago and really enjoyed it. I think our kids would love it.

4. I also plan to ride in a few (2-3) centuries (100 miles on a bike) this year, so these will be mini-vacations for me.

Click here to read part 8 of this series.

10 New Years Money Resolutions, Part 6

Here's part 6 of a series from Money magazine that lists their 10 New Years Money Resolutions:

Resolution 6: Protect your family

There's a simple reason that 55% of Americans don't have a will: "It's difficult to talk about death and money," says Colleen Barney, author of Best Intentions: Ensuring That Your Estate Plan Delivers Both Wealth and Wisdom. And it's even harder to make emotional choices about, say, who will raise your kids. But ignoring the topic could one day leave those tough decisions in the hands of a probate court judge. Try reducing the tension in the situation with a highly pragmatic approach.

1. Start the conversation.

2. Choose a guardian.

3. Make it public.

4. Write the will.

My thoughts:

1. As I've posted previously, updating my will is one of my resolutions for 2006.

2. Also see Benefits of a Will from Free Money Finance.

Click here to read part 7 of this series.

10 New Years Money Resolutions, Part 5

Here's part 5 of a series from Money magazine that lists their 10 New Years Money Resolutions:

Resolution 5: Spring for a splurge

Everyone deserves an occasional indulgence. What's more, says April Benson, a psychologist who specializes in compulsive shoppers, "if you deprive yourself too much, you're set up for future binges." In other words, rewarding yourself with a planned purchase now helps stop you from blowing your budget with impulse buys later.

1. Pick the prize.

2. Make it real.

3. Create your game plan.

4. Stay on track.

5. Buy it.

My thoughts:

I'm more of the "buck up" sort of guy, so this isn't my favorite resolution, but I understand how those with money challenges need this. Just don't let it get out of control. I have a family member who makes a habit of rewarding herself and never makes any progress financially as a result. Too much of a good thing is not good for your finances.

That said, saving up for a special purchase is a good idea. We just did this and went to the Great Wolf Lodge. It wasn't money-related (it was a reward to our kids for doing well in school), but it could have been. Anyway, since we'd been there before, our kids were highly motivated to do well and they did everything they could to earn the trip. ;-)

Click here to read part 6 of this series.