It’s the start of a New Year and the possibility for change and improvements are endless. You can join the gym, learn a second language, take up pottery, and promise to spend more time with your loved ones. Any and all of these are great new starts, but don’t forget to include making your financial resolutions for the New Year.

Below are some Financial Resolutions to Consider:

Start by making your own personal financial statement – compare how much you own to how much you owe. The difference is your net worth. This may help you uncover opportunities and set goals to improve your financial health in 2013.

Set both a spending and savings budget – knowing where your money goes each month can help you avoid overspending and help you find more places to save. Also, spending less will give you more cash to invest in your future.

Make retirement savings a priority – learn to set aside a portion of each paycheck, no matter how large or small. When you put money into your 401(k) you lower your taxable income as well as give yourself the potential for tax-deferred growth.

Eliminate debt – Keep in mind that the less debt you have, the more you can invest in your future. Start by paying down credit card bills and personal loans, as these carry very high interest rates. Also, home loans should be analyzed carefully – they can be the longest debt in your lifetime.

Create an emergency fund – experts advise having at least 6 months of expenses in an emergency fund. If you do not already have this in place, this would be a great year to start building this fund.

Empower yourself – learn something new about investing, read an investment article or enroll in an education program. The more you know the more confident your will feel when it comes to investing.

Consider help – not all of us can grasp the investment world, largely due to the fact that there is a lot to know. There are countless types of investments, constantly changing tax laws, inflation and much more.

Working with a knowledgeable financial professional who understands both the financial world and your individual needs can help you — Make your Financial Resolutions for the New Year.

Answers from AZ