Jazzy January Financial Resolutions

OK, folks, 2012 is here and my plan is to give you some financial "must do's" for each month of the year.  By the time December, 2012 rolls around, you will be well on your way to having your financial house in order. 

January is a good time to do the following:

1.  Check your credit score. 
Since 2005, consumers have had the right by law to get a free annual credit report from the credit reporting bureaus. To do this, go to AnnualCreditReport.com. While there are other websites that may promise to provide your credit report, this is the official website, supported by the free credit report law. In other words, it’s been sanctioned by the US government.

When you arrive at AnnualCreditReport.com, you’ll find that you have three options: Equifax, Experian, and TransUnion. Each of these represents a different credit reporting bureau, and each has to give you a free credit report once a year.

If this is your first time checking your credit report, we advise you to check all three now. A 2004 study found that 25% of all credit reports had some mistakes, so it’s critical to make sure that all of your credit reports are accurate

2.  Consider Refinancing
Mortgage interest rates are ridiculously low right now--I can not imagine them descending any lower.  If you have not taken advantage of these low rates, then seriously consider refinancing.  But only if you plan on remaining in your house for at least 4 or more years.  And only if you can refinance for no more than 80% of the value of your home.  Lock into a 30 year fixed and then pat yourself on the back for making a really smart financial move.

3.  Organize Tax Records
Start collecting and organizing all your tax records.  It is amazing the money you can save on taxes if you take the time to organize!  Your tax preparer will LOVE you if you have all your records together. 

4.  Set Realistic Goals
This is a good month to set some financial goals.  Maybe you need to save for a car, or set up an emergency savings fund or more aggressively save for retirement.  Write down your goals and create an action plan.  The best and most effective way to save has always been to "pay yourself first."  This means setting up automatic transfers from either your payroll or your checking account to the savings plan of choice.  There is no other way to do this.  If you wait till the end of the month, you will have more month left than money.

Here's wishing each of my readers a year of financial prosperity and abundance and a heart to share.