Finish 2008 better off than when you started

The New Year is a time that many of us take stock and set new goals - it's also a great time to think about your financial situation for the coming year.

Everyone can benefit from financial planning. No matter how much money you have or earn, it's about what you do with what you've got. Starting a financial plan early in the year - and sticking to it - will help you to finish the year in a stronger position than when you started.

Here are three simple steps to getting financially sorted in 2008:

1. Write down your short, medium and long-term financial goals
Your goals could range from paying off your credit card debt, putting a set amount of money away each week through to saving towards an emergency fund. Longer term you may be looking at saving for a house deposit - or knocking off the mortgage completely. 

2. Make a budget
Ideally you should spend less than you earn. This may mean looking at how you might be able to cut costs or trying to find ways to increase your income. Once your budget's written down and you can see where the money is going, it can be easier to manage.

3. Get better at managing your personal cash flow
Think about cash flow as your money coming in (like your wages, salary or benefit payments) versus your money going out (your bills and other spending). Understanding where your money is going will help you to see whether you're sticking to your budget or not and whether you need to make any adjustments. 

Sorted has information and calculators to help you through these steps. If you need more help with making a budget, call 0508 BUDGET (0508 283 438) and talk to a trained budget adviser - for free.

Published 15 January 2008