Resolve To Be Richer - personal finance - Brief Article

Ebony, Jan, 2001

THE year 2001 is here, and with the turning of the calendar comes a new and beneficial opportunity. You have a chance to get your finances in order, and make your resolution to be richer succeed.

Many of us have money on our minds at this time of year. The gift-giving holidays have drained our wallets and stretched our credit to the limit. We're struggling to make sense of the financial contusion. Resolve to be richer and that cloud of contusion can be replaced with the clear skies of clarity that sound finances will bring.

"There's nothing greater than having financial peace of mind," says finance specialist Glinda Bridgforth, author of Girl, Get Your Money Straight!: A Sister's Guide to Healing Your Bank Account and Funding Your Dreams in 7 Simple Steps. "That financial peace of mind can then permeate other aspects of your life."

Here are five suggestions for making and achieving your New Year's money resolutions:

1. Understand your attitude about money and finances.

Money experts say many of us don't know how or why we're not successful financially. Is it that we started playing the game too late and don't have the proper tools? Or is it that someone else has always held the tool kit?

Regardless, Ws time for a change, says Gwendolyn Kirkland Brown, a senior vice president at American Investment Services Inc. in Matteson, Ill. Brown says money should no longer be a taboo subject in the African-American community. To build wealth, your family--especially young people--should know about saving and spending, budgeting and bills.

"Start talking about it, and bring it out of the closet," says Brown, a certified financial planner. "Commit to having a family meeting once a month to go over the bills. Educate your children and your spouse."

Another good idea, according to experts, is to subscribe to financial publications and check out the stock market (even if you don't have any investments). Both activities are great ways to stay informed about the value of your money.

However, in all the advice about bringing in family involvement, you must also remember to educate yourself. Consider attending a money-management seminar or starting an investment club.

2. Set realistic financial goals.

Don't just say you want to have more money a year from now. Lay out a specific plan to meet a positive, life-affirming and self-esteem-building goal for yourself, and your family. Write it down in a notebook or journal.

Start by asking yourself this question: What do I want my life to look like in 2001 and beyond?

Are you interested in saving more money? Investing more in your company's 401(k) plans? Do you want to buy a condo or house?

These are all basic questions that, depending on the answer, could shape the rest of your financial life. Also, make sure your financial goals are in balance with the rest of your life.

"`Goal' has a much more positive connotation, so you have the right mind-set," says Bridgforth, who splits her time between Detroit and Oakland, Calif. "It's got to be something that really motivates you."

3. Write down your goals and check your progress.

In the same notebook or journal, write down a "spending plan," which will help you figure out where your money goes. Set specific target dates and ways to meet them. For example, if you want to save $400 over four months, divide it so that you're taking a little out of each paycheck. Check your progress as often as you can and look at your goal consistently to see if there are more efficient ways to reach it.

"If you have a goal and look at it only once a month, you have a tendency to stop much more frequently," Bridgforth says. "Checking your progress helps to keep you on track."

4. Your self-worth shouldn't be tied to your financial worth.

Often we begin to lose our self-esteem when we have money woes. Many people tend to spend money to make up for their lack of sell-esteem. One of your goals should be to separate yourself from that idea.

Patience is key, so is being supportive of yourself and resilient if you get off track.

5. Commit some time to your finances and get back to the fundamentals.

If you only spend a few seconds each day thinking about your money, or if you haven't balanced your checkbook in ages, it's probably time to step it up. Brown suggests that you focus on finances for at least 30 minutes each week, whether it is paying the bills on time or balancing your checkbook. You'd be surprised that many people do not attempt these two simple tasks, at least not on a regular basis.

If you have trouble with these fundamentals, consider some alternatives: You can have your bills automatically debited from your checking account to meet deadlines anti save time. As for balancing your checkbook, there are books and computer software aimed at helping you do just that.

But, just as it is with most self-improvement projects, it all starts with you. And if you want to be richer, it should start NOW in 2001.