Guest Author - Cate Brizzell

Happy New Year!

The beginning of a new year is a great time to sit back and dwell on your accomplishments. Hopefully, from a home finance perspective, your 2007 was a success and your net worth increased.

There may also be financial decisions you regretted, things you would have done differently, or opportunities that passed you by.

No need to dwell! What's past is past, and you can't change it. But your financial future still lies ahead of you, and there are many things you can do to make 2008 the best year ever for your home finances!

Here are some goals you may want to consider working towards this coming year. Go through the list and highlight the ones that apply to you. Then prioritize the goals, only starting a new one when you've finished the one you're currently working on.

Organize your records. It's tough to be a financial success if your records are a mess. Take a day to get your filing, bill-paying system and inbox in order. Reward yourself with take-out. Make the entire day about nothing other than home finance organization.

Create or adjust your budget. If you don't have a spending plan, make one. Include your significant other in the process. Make sure your budget is realistic and includes some fun money. If you find your spending exceeds income, look for ways to cut back. It's easier than you think. Work with numbers, not emotion, and try to cut in areas that won't hurt as much as others. If your income exceeds expenses, look for ways to cut wasteful spending and increase your savings and investments. Set up a system for regularly checking your budget progress.

Automate your bill payments. Most banks and credit unions offer online bill payment services these days. Utilize this service to save yourself time and stress. You may eliminate a few late fees as well!

Set up a financial cushion. Begin a systematic savings plan to accumulate three to six months' living expenses in a high-interest savings account. For best rates, visit www.bankrate.com. If you have to dip into this fund for emergencies, so be it. Just make sure you get right back on track. The very best way to accumulate your savings is to make it part of your budget and automate the process.

Set up a short-term savings plan for a new or used vehicle to replace your current one. If you don't have a car payment right now, take the time to set aside a monthly car payment in a high-interest savings account. You'll be glad you did when you use a large down payment for your next vehicle. Better yet, you may be able to pay in cash.

Set up a short-term savings plan for holidays, vacations or other big-ticket expenses in 2008. If you contribute to these expenses every paycheck, you'll find it much easier to have the money waiting when you need it. Begin an automated savings plan for these goals today.

Give yourself a raise. Are you getting a big refund in 2008? The average refund in 2007 was around $2000. That means Americans were lending the U.S. government around $167 a month--interest-free! If you change your W-2 withholding to match the recommended exemptions on the W-2 worksheet, you should just about break even on your taxes each year. This mean you'll give yourself a $167 raise each month! If you're looking to increase your monthly income, this ia a simple and easy way to do it.

Review your retirement plan. Do you have a tax-deferred plan available to you through your employer? If so, contribute at least up to the matching amount, and then add more, if possible. If you're self-employed, check with your accountant on small business retirement plan options. In addition to your retirement plan you may want to consider a Roth IRA. For most middle-class families, it's a terrific way to save for retirement, college expenses and more. Contributions aren't deductible, but the earnings will be tsx-free when you make withdrawals. Money contributed to Roth IRAs can be used for educational and other expenses down the road. Regardless of which retirement vehicles you use, automate everything! That way you won't forget to contribute.

Review your insurance policies. Do you have enough life insurance? Disability insurance? Health insurance? Dental insurance? Homeowner's? Liability umbrella policies? Adequate auto coverage? There are endless resources online for calculating how much you need. Just remember, insurance salesmen are just that, salesmen. They'll try to sell you whole-life policies that don't produce results superior to regular investment vehicles. Opt for policies that cover what you need at reasonable rates and proven customer service.

Plan your estate. Draw up a will or review the one you have. Make sure your living wills and health care proxies are in order. Check your life insurance beneficiaries. If you're in later seasons of your life, begin discussing estate planning options and long-term care insurance with your attorney and your executors. Make sure your records are easy to find and easy to follow.

Save for college. There are several college savings vehicles available now, with the Roth IRA considered the most superior. Section 529 plans are a close second. Whichever you choose, just do something. You may not be able to pay the bill in full but every little bit helps. And remember, you can borrow for tuition, but you can't borrow for retirement. Saving for retirement must be a higher priority, especially if you want to be financially secure and in a position to help Junior afford the college of your choice. (A little parental humor to lighten the mood.)

There's more you could do, of course, but these goals cover a majority of home finance issues for most families. Each step you take to improve your finances in 2008 is one step closer to financial stability and freedom.

Just think where you'll be on January 1, 2009.