12 financial resolutions for 2012

Still living off credit cards? Can't figure out how much you could or should spend? Need to save for retirement? Deborah McNaughton, a Placentia credit expert, financial coach and author of “The Essential Credit Repair Handbook,” is here to provide her financial advice:

Each year we all sit down and scratch our heads trying to come up with New Year's resolutions that will stick. Finances are always in the top ten resolution list.

One of my favorite movies last year was “The Help.” The line, “You is kind. You is Smart. You is Important,” is one that people need to remember when they are feeling distraught.

When people are facing financial challenges they want to run and hide. They also fall into the “mind trap” that they see no end or future to their situation. They become negative and begin to feel insecure in all of their choices in life and not just money.

Here are 12 New Year's resolutions that you may want to add to your list. Some you already know about and some you may have never thought about in dealing with your finances:

1. Get a copy of your free annual credit report atwww.annualcreditreport.com. Review each item to make sure each is correct. If you find errors, dispute them with the appropriate agency.
2.  Start saving money by taking your fast food runs and coffee run money and dumping it into a jar. Once you reach $100 in change open a savings account. You not only will save money, but you will also avoid the calories and added inches to your waistline. (Read my book: "Rich and Thin: Slim Down, Shrink Debt, & Turn Calories into Cash" or visit my website:financialvictory.com.)
3. Set a realistic budget. Don’t be blinded by what you think you are spending. Get a reality check by listing everything. Go back to your checkbook and credit card statements. Use mybudget worksheet.
4. Create ways to earn more money. You were born with special gifts, talents and hobbies. Use these talents to make money part time or turn it into a small business. It may be time to reinvent your self and feel rewarded.
5. Clean out your closets and look for items that you can sell. Either donate and help someone in need or use the money to pay down debt or save.
6. Help a needy person or friend. Anything that you can do either financially or just donating your time will give you great satisfaction.
7. Pay it forward. Any little bit of money or gift that you can give to others, do it and then ask them to pay it forward to another person.
8. Be a silent blessing. You don’t have to have a plan. Spontaneously pay the fast food bill for the car behind you in line. Pay a bill for someone in need. Drop off groceries on the porch of someone who is out of work. Become a "layaway angel."
9. Mentor someone who is going through financial problems. Help them with their budget. Be an accountability partner.
10. Hang out with positive friends and associates. People who are having financial problems tend to withdraw from people. That is the worse thing to do. Negative people will pull you down. Positive people may be able to help you brainstorm to turn your situation around and give you a shot of encouragement.
11. Begin teaching your children how to manage their money. What you teach your child at a young age can be a stepping stone to how they handle their finances as an adult.
12. Use all your extra money to become debt free in 2012.

Being secure financially is important, but what legacy do you want to be remembered by? Is it just the things that you have accumulated throughout the years or is it the things you did to help others?

Using good financial judgment and being responsible with the finances you have is important, especially in these economic times. What we all have learned this past year is we can do without a lot of luxuries we thought we needed and not have to be one up on our neighbor or friend. More importantly we can be satisfied with what we have now and reach out and touch other people’s lives. That is what we want to be remembered for.

Don’t forget, “You is Kind. You is Smart. You is Important." With this implanted in your mind you can do many things financially and be creative on how you will do it.