New Year Financial Checklist

A new year means new beginnings. A fresh start. A clean slate.  It's a great time to go over your financial situation and make sure you've got everything covered.  You know the feeling when you get an hour down the road and you realize you forgot something.  Not fun.  Below is a checklist of financial things that you need in place as you move forward into 2010.

• Written Budget.  You need to have a visual budget (paper or computer).  You need to have categories for things such as groceries, insurance, entertainment, housing, gasoline, savings,etc.  You need to have a destination for each dollar before your first one is spent.  Not having a budget is like not having a target at the shooting range.  Aim for nothing and you'll hit it every time.  Money that is not accounted for often gets blown on things that aren't important.  Go ahead and get that budget in writing.  You can preview sites such as www.mint.com  or www.youneedabudget.com.  You can also read other blog reviews of these programs as well.
• Emergency Fund.  You need to have 3 months of expenses in a separate account to handle life's unexpected costs.  I recommend www.ingdirect.com.  The set up is quite easy and you can link to your checking account so transfers can be made efficiently.
• Will.  I heard it said that over 50% of people have no will.  Not having a will can make things very stressful on your family.  You need to make your last wishes known in a legally written will.  You can shop around and do this for a minimal cost.  A little out of your pocket can make an already emotional event much more manageable for your loved ones.
• Adequate Insurance.  Life has risks.  You need to be prepared for them.  To naviagate through life successfully you must have auto, life, health insurance.  Being uninsured for unexpected health concerns and other events can devastate your finances in a hurry.
•  Retirement Plan.  You need to plan for retirement.  Start off with any plan that may be offered by your employer.  If your employer offers a 401K you need to sign up as soon as possible.  If you're stretched for cash, don't worry. You can often begin with just having $25 deducted from each paycheck.  Don't pass on funding your retirement.  Educate yourself and begin today.
• Debt Repayment Plan.  If you have debt, you need a plan to eliminate it. Dave Ramsey recommends that 'snowball' method where you pay off your debts smallest to largest.  You can also pay high interest debt first if you desire.  The important thing is that you pay down debt as soon as possible.  Debt robs you.  You need it out of your life.  I recommend you go through Financial Peace University.  You can sign up for a class near you at www.daveramsey.com.

Well, there you have it.  Where do you stand? Do you have all these in place?  If so, you're off to a good start.  If not, you just got your New Years To Do List.  What have I left out?  Please comment if you have something to add.  Good luck to you as you seek to have a better financial life in 2010!