Keep Your Financial Resolutions This Year
Texas CPAs Give Tips to Keep Your Budget in Tip-Top Shape

DALLAS — Paying off debt and saving money are among the most popular New Year’s resolutions. And the Texas Society of CPAs has some helpful tips for those who want to meet to meet their financial objectives in the coming months.

HAVE A PLAN
People often fail to keep their new year’s resolutions because they don’t plan out the steps they need to take to succeed. It’s difficult to reach your goals if they aren’t clearly defined. Take the time to list your financial resolutions and be as specific as possible about what they are and how they can be achieved.

PAY OFF DEBTS
When you make your resolutions list, CPAs advise that lowering your outstanding credit card debt should be a top priority. Credit cards typically carry high interest rates that drain cash that you could be using for more worthwhile purposes. To reduce your debt, resolve to cut back on other expenditures so that you can use these funds for credit card bill payments. Also, consider ways to lower the interest rates you are paying. Call your credit card company and see if you can negotiate a better rate. If that doesn’t work, transfer your balance to a credit card with a lower rate. Web sites like www.bankrate.com and www.creditratings.com offer advice on the best cards for many different situations.

Taking out a home equity loan is another option, since they carry lower interest rates than charge cards do and the interest is usually deductible for loans up to $100,000. Finally, if you have money in a savings account or certificate of deposit that is earning very low interest, it might be a good idea to use those funds to pay off debt. You will be saving more on interest payments than you earned on the savings account.

START SAVING
As soon as you have reduced your high-rate debt, start adding to your savings, particularly your retirement account. The money you set aside can be earning interest or stock market returns that will come in handy later. Traditional individual retirement accounts or Roth IRAs also offer worthwhile tax advantages, CPAs advise. And this step is easy if you arrange for automatic payments made to a savings or retirement account from your checking account.

MAKE THE MOST OF YOUR INVESTMENTS
It’s a good idea to review all your investments every six months to be sure they are still meeting your financial planning needs. If interest rates have risen recently, for example, you may find certificates of deposit or other safe, short-term investments that will pay more interest than your savings account. Review your stocks and mutual funds, too, to see if they are performing as expected or if another investment would provide a better return.

KEEP GREAT RECORDS
You can’t make good financial decisions without the right information, so it’s important to maintain and update documentation on your major accounts and transactions. Set aside a file box and add important paperwork, such as your property tax bills, mortgage interest statements and receipts for donations to charity. And remember that your CPA can help you with your financial decision-making. Consult him or her on the best ways to keep all your financial resolutions.

PERSONAL FINANCE INFORMATION
For additional personal finance tips, visit www.ValueYourMoney.org. While there, sign up to receive a free monthly electronic newsletter with personal finance tips on a variety of topics. 

ABOUT TSCPA
TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 28,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.