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New Year’s is upon us again, and a fresh start for many people who are making resolutions for 2011

Some of the common commitments for the New Year are spending more time with family and friends, finally getting into shape, quitting smoking, or finally getting organized. But what about your financial goals for 2011? What are some of the important steps you can take over the next 12 months to get your financial life in order?

At Gateway Regional Credit Union, we work very hard to help your improve your personal finances. The main thing to remember is that without a plan, your goals will always be dreams. So here are the Top 7 Financial Resolutions for 2011:

1. Review the Previous Year
   The first place to start when considering your financial resolutions for 2011 is to begin by reflecting on the previous year. Take a look at last year's budget if you had one, and identify the good and bad money moves you made last year while you resolve to make the necessary improvements for the upcoming year. This could include spending money on things you did not need, or not shopping around and paying too much for items.
   
   
2. Set a Realistic Budget
   Be realistic with what you like to spend your money on. If you like to spend your money on the occasional $5 coffee in the morning, know that you probably can't afford to buy your lunch every day too, and should plan on brown bagging it a few days each week. Having a budget doesn’t have to be all about restrictions or strict rules, but more about having a nice balance.
   
   Where do you want to be at the end of 2011? How about in five years? Every goal needs a plan. Whether you want to save for a down payment, go on vacation, buy a car, or simply reach a savings goal, what steps do you need to take in order to get yourself there?
   
   
3. Live Within Your Means
   The point of creating a budget is to make sure you are living within your means. Learning how to distinguish between needs and wants is critical to helping you do this. For example, you need to have money to pay your rent or your mortgage so you have a place to live. However, that daily $4 coffee mentioned earlier is definitely a “want”. Once you recognize the difference, you may find it easier to make the cuts necessary to live within your means.
   
   
4. Get Out Of Debt
   We have all been reluctant to open a bill in the mail, knowing that the total owed is more than it should be! But for anyone in debt, it really is much better knowing what your financial situation is than to stay in the dark. Once you have created a realistic listing of you monthly net income and what you can spend in each budgeting category, decide how much of each month’s budget should be used to pay down debt.
   
   Start by listing all of your debts, their interest rates and the minimum monthly payments on each one. At this stage, it is critical to know your options. One great option is to consolidate your debts into a single payment, with our special Consolidation Loan at Gateway Regional. You’ll receive a very competitive interest rate, as low as 12.5% APR*, and have only one monthly payment to make each month. This makes budgeting, and making sure you stay current with your bills, much simpler.
   
   And be sure not to deplete all of your savings at the beginning of your plan if you can help it, as one of our other resolutions is to make sure you have an emergency fund set aside for all those unexpected expenses.
   
   
5. Build an Emergency Fund
   Most financial professionals recommend you save at least 3-6 months worth of living expenses if you can. This will help you stick with your budget even when unexpected expenses pop up, and we all know that they will! Start by making contributions to your share account at Gateway Regional on a regular basis, whether it’s saving $100 a week, $50, or even just $10. You’ll be surprised how even smaller amounts can grow over time, and can help you when your need is greatest.
   
   
6. Automate Your Finances
   If your money seems to slip through your fingers before you can save any of it, putting yourself on an automatic savings plan to debit even $50 per month from your account is a good way to save without feeling the pinch. If you don't see the money, you won't miss it and before you know it, that $50 per month in savings will be $600 at the end of the year.
   
   If your problem is more that you keep forgetting to pay bills and end up paying penalties and higher interest rates on overdue bills, you can help automate your monthly bills by signing up for Online Bill Pay with Gateway Regional. This works especially well with recurring bill payments every month, like a car payment or house note.
   
   
7. Improve Your Investing Knowledge
   This is one area that many people are afraid of. And of course it can be confusing if you try to do everything all at once. Start slow and simple, and talk with a trusted advisor, like your Gateway Regional Member Service Representative, to learn what specific options are.
   
   The power of compounding interest also makes it especially important to start saving for retirement as soon as possible. If you have a company 401(k) plan, try to take full advantage of the company match if you can. After investing enough to qualify for your full company match, consider opening an IRA or money market account through Gateway Regional.
   
   The last couple years have been financially tough for many people, but lots of folks are beginning to see renewed optimism about their financial futures.
   
   Many consumers are working hard to reduce debt, set realistic budgets and improve their savings. At Gateway Regional Credit Union we encourage all our members to continue improving their financial literacy to build strong money management skills.
   
   And remember - just like losing weight, getting financially fit does not happen overnight! If you think your hard work is not paying off as quickly as you had hoped, remember that's when most people tend to give up and fall back into old habits. Be patient, and push yourself during these times to help yourself get through the difficulties.

*APR = Annual Percentage Rate. Offer good January 1 through February 15, 2011. Normal credit criteria apply. Rates are subject to change and based upon your credit history. Offer does not apply to existing signature loans. See Gateway Regional Credit Union for more information.