Every January, as we begin a new year, we also begin a new period of change. Many of us firmly set New Year’s resolutions for things like weight loss, smoking cessation, and perhaps to eat a more healthy diet. Sometimes we stick to these resolutions, and sometimes we don’t. In the coming year, however, we have unprecedented challenges ahead of us that will require dedication and a desire for genuine change on the part of everyday working Americans. So while it is important to resolve to better your physical and emotional health, it will also be vital to better your financial health. This is especially crucial for the many people that have sought the help of qualified foreclosure attorneys in Long Island. Often, foreclosure can be prevented, and by making some financial changes in the New Year and sticking to them, you may be able to avoid foreclosure altogether.

Part of your resolution plan should be to create a comprehensive budget. Be sure to include all of your expenses: the cost of entertainment, lunches and eating out, gifts for family and friends, clothing, salon appointments- all of these types of items often are not included in a person’s budget, and can account for a vast amount of money. Therefore, don’t just calculate the large items like mortgage payments and insurance. Sometimes, you might even find that those “little” expenses total up to more than some of the bigger ones.

Once you have accounted for every one of your expenses, the next step is to determine ways to reduce or eliminate those costs. For example, many people spend nearly one thousand dollars a year on their morning coffee. To spend several thousand each year eating out is also terribly common. These are two examples of expenses that can be easily reduced, or even eliminated outright. Another common way to reduce expenses is to refinance loans- especially mortgages, student loans, and auto loans. More favorable terms, decreased payments, and decreased interest rates are all ways to produce more disposable income. Consider contacting your credit card companies and negotiating for better terms and rates with them as well.

When finished, your budget will tell you how much disposable income you have available each month. That income can then be used to pay down high interest rate balances, or to pay off debts entirely. Apart from doing this, one of your primary money resolutions for 2009 should be to save money. Consult with a qualified financial advisor about ways to safely grow your money. The truth is that you work hard for your money, so it makes sense to make your money work for you by earning its own interest. Bonds, savings accounts, and CD’s are all great ways to save money for your future and that of your family.

This entry was posted on Sunday, February 8th, 2009 at 7:10 am and is filed under Long Island Foreclosure Firm, Nassau & Suffolk County Real Estate, Stop & Prevent Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.