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For so many of us the new year brings a new beginning it could be you want to lose -- it could be you wanna spend more time with family it isn't time for making resolutions.
More importantly though we want to keep them.
And if you're making New Year's financial resolutions we're gonna help beekeeper -- your along here now -- out former managing director of Morgan Stanley.
To help us rich make financial resolutions we can all keep.
Because will be better off in the long run -- the end of next year or this year now.
Let's start with some tips and we'll put them up actually some of the resolutions you can make in the first when I wanted to ask you is about paying yourself first.
Yes what I mean by that simply is.
Establish a pipeline if for example.
I want you to create a relationship between your bank and your checking account or your.
-- or or your or your paycheck I don't care -- even five dollars a month Jamie I want the pipeline to be built once you create that I -- pay yourself first.
Over time when things get better and might be a 2550 or a hundred dollars a month but if you don't build the pipeline first look -- -- union money just a little bit of time.
Then -- pipeline to simply won't be dealt the.
Let me move on now let any extra money follow the highest interest -- And lever down what does that mean he has what it means simply put let's say you have -- credit card debt -- 2000 dollars and 20% interest rate.
And and have a mortgage today at a 100005%.
And -- the tax refund.
I want you to take it and follow the interest rates amassing either tend to take it to pay off -- 20% first got the balance.
That's bad bad debt let's get rid of bad debt and -- leverage down.
And if you have if you do have the extra dollars get rid of those big interest rates first.
Also you say that one of the things if we're thinking about life insurance is a way for us to save money on her premiums in the new year how do you do that yes there is is really too.
Primary ways first of all if you were a -- healthy -- last year he kept the resolution of losing weight.
And you lost probably more than ten pounds you can go back to your life insurance company and probably get a discount on your premium.
The same as if you actually quit smoking for twelve consecutive months -- now considered a nonsmoker.
Rates come -- also.
That's a great idea I wonder if we go back to our credit card companies and say we paid our bills on time and we're making progress on our balance give us a better rate to.
Well -- odds -- it's funny you say what you're absolutely right.
Everything in life is negotiable if you want today.
And going back and saying I'm I'm a good credit and getting that 20% even down to 50% always makes a difference I love it up.
Any saved enough for our future.
Flexible spending account some of the rules changed.
Some people don't even bother they think it's complicated but if you can pay for your drugs your child carry your medical visits.
With pretax money there's a real benefit for that do you advise people take advantage.
Absolutely I I do Jamie and fortunately.
That -- that advantage as you called is now going to be limited and the reason it's limited which really gets me frustrated is because of the new Health Care Reform.
It has to be paid for and one of the ways they're doing that -- taking this wonderful benefit.
At the middle class love and enjoy called flexible spending accounts and things like braces and on reimburse medical expenses.
It used to actually be limited you can put as much as 5101000.
Dollars a year continues plans on the tax deferred basis.
That number of the -- in 2012 is not 12500 dollars.
That is a significant cuts in that benefit it is and I think it's something people don't realize until they actually go for this year and try to do something.
So therefore all the other tips that you and I sharing today you have to take advantage -- -- going to be limited with the flexible spending accounts are at last -- you say you should share with your loved ones what are your financial resolution as you know work couple's breakup over money on shore so you really want us to tackle that -- But -- you know something -- have a partner or you don't.
And if you have a partner and uses simple analogy I want to go work -- have exercise right if I actually had a partner and I think it -- 6 o'clock in the morning I don't want to disappoint my partner.
Same thing with financial suffice set my goals -- a have a partner we're trying to pay off our credit cards together.
Right take our tax refund and put it towards a a free up a debt payment to gather right together -- is better than one.
Aren't well I'll just remind folks that since I'm an accountant and a lawyer for getting -- tax refund.
You've paid too many taxes and -- so repayment readjust your with holdings at the beginning of the that's smarts with my little tip thank you so much rich -- great information today thank my you know game.
Aren't happy new year and if you want more take charge consumer protection information.
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