Does Your 2011 New Years Resolutions Include Your Finances?

Many of us have the urge each year to seize control of our financial house but we really don't know where to start.

You know, those well intended New Year Resolutions that start off with a bang and fizzle out a few weeks later?

Well if you're finally fed up and ready to say,"the buck stops here"; then here are some critical steps to help you:

1. ATTACK AND PRIORTIZE YOUR SPENDING

Budgets are not your enemy! To rein in spending, follow these tips; for a month, write down every last penny you fork over, so you can figure out where the leak is. Then cut out those items you want, as opposed to truly need. Also, pay cash for almost everything, because using credit cards becomes so painless in the beginning but it can really hurt when you get the bill; yes, it's easy to rack up huge bills.

2. START SAVING EARLY

Consider this scenario; if you begin saving at age 25 and contribute $2,000 a year you'll end up with more than $315,000 in savings by age 65.

3. DIVERSIFY, DIVERSIFY, DIVERSIFY

Unless you can somehow read the future, you should probably hedge your bets and spread your wealth among numerous asset classes. That way, if one area tanks--the stock market, bonds, or real estate--you won't be wiped out, and the other sectors will mitigate your losses. Younger investors are content with a healthy percentage of higher-risk equities, because they can weather any temporary storms. Those closer to retirement tend to lean more toward safer bonds or cash.

4. STOP BUILDING DEBT

Admit it; you haven't done this very well; new cars, consistent weekend entertainment, clothing and more; sounds like splurging on all wants and very little needs. Cut out the things you really don't need.

5. PREPARE FOR EMERGENCIES AND BUILD UP SAVINGS

Building your emergency fund as well as long-term savings is a good plan to help you prepare for the future. You never know what might happen. And what would happen if you suffered a job loss? Millions of jobs have already been lost, and more are likely to be lost so, what is your back-up plan?

So, if you're still thinking about your upcoming New Year Resolutions, consider taking control and changing your financial future for the better.