I am a proponent of “financial wellness.” To that end, set a few big goals for yourself to complete in 2009 and also make immediate smaller changes. Several manageable large goals for you might include (a) getting your will, power of attorney and medical directive updated, (b) reviewing your company’s benefits package at open enrollment time and making sure that you are taking advantage of all pre-tax options, (c) set up a savings plan in order to have three to six months of current takehome pay set aside for emergencies and (d) try and chart your 2008 expenses and establish a 2009 budget. With that, as December statements come in, set up a filing system to record in one place or file drawer, your assets, your debts, your income and bills and your permanent records (e.g., your house papers, your passport, birth certificate, etc. Immediate changes you might make in January include (a) increasing your 401(k) or IRA contributions yearly until you have reached the max (try increasing your elective deferrals by 1 percent (of salary) a year at first), (b) start charting your 2009 expenses to that 2009 budget you made, (c) checking that your beneficiary designations (for life insurance, annuities, pensions, retirement and IRA accounts) are up to date, and (d) paying an extra $50 to $100 a month against any debt you might have. There are a lot of things that you can do to improve your financial health. So decide what is most important — and perhaps the most difficult — and focus on those items first to get a real sense of accomplishment by the end of next year.

Save more, spend less. Not rocket science, but a good strategy for people in any income bracket. In addition to that very basic concept that everyone preaches, but few follow, consider consulting with a Certified Financial Planner professional to develop a comprehensive financial plan that includes investment strategies as well as income distribution strategies (or how to access your money when you want it). Interview three financial advisers to see who would meet your needs best. The Certified Financial Planning Board has a list of questions you should ask each individual on their website www.cfp .net. Our economic struggles are not likely to abate any time soon. Planning and strategizing for your financial future is critical and working with a professional who is trained to assist you over the long run is probably one of the most important decisions you can make.

Making resolutions are always easier than keeping them but are certainly worthy of trying. I would resolve that everyone do a better job of budgeting what they spend and contributing more towards their retirement. In this country, too, many have relied on using credit cards and taking equity from their homes to subsidize lifestyles beyond their means. Make yourself a budget that includes saving at least 10 percent of what you make in your retirement plan. Try to limit the use of credit cards to what you can pay off each month. Doing this will not only put you in a better financial situation, but it will help keep our country from going through another financial crisis like we’ve just gone through. More importantly, financial success means nothing without your loved ones. Make sure to take this time to appreciate all the good things that you have that have nothing to do with money. I certainly do and look forward to a great 2009. Happy New Year!