By Carrie Coghill Kuntz

Published March 2008

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So, it is now March and you have already neglected to follow through on your 2008 financial resolutions. When December comes around everyone wants to know what they can do to maximize year-end financial opportunities and take more responsibility for their money in the coming year. The media puts out lists such as "Six Financial New Year’s Resolutions," "2008 Financial Resolutions-Inspiration for Your Finances" and many Top 10, Top 5, and Top 3 lists designed to solve all of your financial problems. As with most New Year’s resolutions, they just don’t work. Here is the good news – it’s not too late! As a matter of fact, it is never too late to take control of your money. In addition, don’t wait until the end of the year to do your "year-end" planning. It doesn’t work that way. Your finances should be managed throughout the entire year. Opportunities that exist today may not exist in December when many people are scrambling to do their year-end planning and make their financial New Year’s resolutions.

If you want to do more, you may benefit from following a few tried-and-true tactics. I won’t call these "resolutions" because that implies major behavioral changes that can be hard to stick with. They are easy actions to take at any time of year – though, obviously, the sooner you follow through on them, the sooner you’ll see the benefits.

Ignore quick fixes. I know it’s easier said than done. Although they may sound appealing, there are no quick fixes. While it might make for a catchy headline, that’s not how financial plans are made. It is important to avoid a short-term mindset and focus on the bigger, long-term financial picture. And reacting now to the recent gyrations of the stock market is not planning.

Be organized. Some quick tips: pay your bills on time to avoid fees and to maintain a healthy credit record. Get crucial paperwork in order (e.g. wills, mortgage documents, health proxies, and deeds). Set up automatic payment to your retirement plans and investment accounts. Increase contributions to these accounts if you can (e.g., use the amount of your annual compensation increases).

Track where your money goes. Know the value of your assets and the extent of your debts; pay down bad or unsecured debt, and save credit cards for emergencies. Record spending with computer software or with a notebook; you might discover that you can make do with what you have already. Don’t live on what you don’t have. Most busy people don’t want to take the time to develop and implement a budget. However, if you track where your money goes you develop awareness about your spending habits that can promote change subconsciously.

Understand your investments. Depending on your financial picture, having more investments in your portfolio doesn’t mean you have a better portfolio. Know what you have and why you have it. Adjust holdings as necessary if they don’t suit your circumstances or long-term goals. If your current financial advisor can’t explain to you in under two minutes what an investment is and why you should have it, do business with someone who can.

Stay focused on your ultimate goals, not on what everyone else is doing. Ignore the hot stock tips and where the talking heads on cable say to put your money. You deserve guidance tailored specifically to you, not the widest possible audience. Your goals also should include how you want to spend your money. This will help you to think before you buy. With all of the online shopping, shopping malls, shopping channels, and catalog shopping, it’s not surprising that Americans are carrying a record level of credit card debt. Next time you have an impulse to purchase, ask yourself if the item you crave fulfills a want or a need.

Don’t wait until the end of the year to do your tax planning. With April 15^th right around the corner, now is a great time to gain a better understanding of your income tax situation and what you should be doing throughout the year to minimize your income tax liability. Most people wait until December to harvest their tax losses. This can be a big mistake. Not all losses occur in December. With the stock market as volatile as it is, consider taking advantage of a declining market by capturing some "losses" along the way that will help you when you file your return next year.

People are in need all year long – don’t wait until December to be philanthropic. These days, philanthropy is becoming an integral part of many people’s lives. Especially, the mMillionaireA9 (middle-class millionaire). mMillionairesA9 have worked hard for their money and have accumulated significant wealth (between $2 million and $10 million of assets). Waiting until December to write a few checks to charity in order to get a tax write-off doesn’t sit well with them. Yes, they need the write-offs; but, they also want to make a difference in the lives of others. Philanthropy is becoming a passion for our society, not just a tax write-off.

Think about retirement. For many people who are in their 20s, 30s and 40s retirement seems to be a long way off. Even so, the decisions made during these years can come back to haunt you when your start thinking about retirement in your 50s & 60s. The 5-bedroom house with the 3-car garage (filled with 3 cars) that you bought when you were 35 will have a long lasting influence over your financial life. Thinking about retirement, regardless of your age, will help provide the framework for your financial decision-making.

Consider talking to your children about your estate. From negotiating their allowances to life advice, you probably remember all of the important discussions you’ve had with your children. If you’ve been starting to think about your own estate planning now that your children are grown, you might be wondering if a talk about your legacy is needed. According to the book The Millionaire Next Door, wealth amassed by grandparents will be completely spent by the second and third generation. Oftentimes this occurs when heirs take wealth for granted because they have no idea of the work ethic or family values that created it. If you have benefited from working hard – living within your means, and spending wisely – your children will benefit form the same secrets to success that you had.

The key to financial success is not found in "lists" and "quick fixes." It is accomplished by paying attention to your financial life starting today! A holistic approach is necessary in order to build your blueprint for wealth and to best target your desired financial results at retirement

Carrie Coghill Kuntz is a Certified Financial PlannerAE and President of D.B. Root & Company Wealth Management in Pittsburgh, Pa. She is a registered representative of Commonwealth Financial Network, a member of the FINRA/SIPC.