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December 31, 2021

What's your money resolution for the New Year?

2012 was a year highlighted by motifs of fiscal irresponsibility, a time when terms like “debt ceiling” and “fiscal cliff” entered the mainstream lexicon.

1408768_2013_1But let’s leave that behind, shall we?

While our neighbours to the south may be battling that whole cliff thing well into the New Year, perhaps we won’t have to, leaving us 365 days to get our wallets in order.

So, what will your financial New Year’s resolution be for 2013?

It’s a big question, and certainly one you might have a few answers to.

But before we get to the comments, let’s go through a couple How To’s when it comes to NY’s money resolutions.

*Bing: Money trends for 2013

First, you’re going to want to start with modesty.

At the end of 2013, you may want to pay down your $8,000 credit card debt, say, or renegotiate that mortgage. Yet those are also daunting, big picture goals.

Instead of thinking of a resolution in long-term, uh, terms, pick it apart. If $8,000 in CC debt is your target, break it down into quadrants (pay back $2,000 every three months of 2013). Or if renegotiating your mortgage is something you want to achieve, start small by simply contacting your bank and making an appointment with an advisor. Baby steps.

Most experts agree you’ve got to think small to achieve something big.

What you’ll also want to do when weighing New Year’s financial resolutions is cater to yourself. So much about saving is mental, so set goals for yourself that make saving worthwhile.

If that means paying down one stream of debt completely, while temporarily ignoring another higher-interest stream of debt, that may not be all bad. There’s something to be said about consolidating debt to one, manageable source. Even if you may be forfeiting a bit in interest in the short-term, trimming down your debt sources to one can go a long way into making debt reduction seem possible.

What will be your financial resolutions for the New Year?

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

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