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How to be financially in shape in 2013

Author: Naomi Esterly
Published: Dec 21 2012

BIO: Naomi Esterly writes freelance for MyProjectorLamps.Com. She is a mother of two boys and a newborn baby girl. During her spare time she likes discovering new ways to decorate the house, cook healthier meals and spend more quality time with her family. Her guest post today centers being financially in shape for 2013.

This may be that time of the year when people formulate goals to accomplish in 2013. One resolution that many people make before the start of the year is to gain financial independence and security.

In order to attain financial security in the coming year, individuals should be aware of all the factors impeding their progress such as high bills and financially damaging spending habits. These are factors a person needs to change to be financially secure. Setting clear and achievable goals, knowing how to achieve the goals and setting deadlines for achieving set goals are some of the tactics a person can use to be financially secure.

Take charge of finances

Have a clear picture of one’s financial situation. Most people who are not financially secure do not have a clear sense of their financial situations. They do not know how much they owe, at what percentage the debts will be repaid and how long it will take to repay debts.

The first step in achieving financial security is getting a breakdown of all bills paid in a month, writing down how much is owed and figuring out the amount of income left that will be used to clear the debts. Those in a relationship should practice this with their partners. Open and honest communication between partners on financial issues is an important step in attaining financial independence.

Emergency Fund

Set aside some funds for emergencies. This will help take care of unexpected expenditures and eliminate borrowing. The amount set aside can be as little as an individual thinks is enough for financial backup while they take care of other financial issues.


Individuals should pay themselves first. This is an important aspect of financial security. The amount should be deposited in a separate account from the one that caters to household expenses. Individuals can pay themselves 5-10 per cent of their take-home pay. This amount boosts a person’s confidence in their ability to save and can be used as capital for future investments.

Get out of debt

As people work on paying themselves first, they should also strive to pay down their debts. Any amount a person earns outside of what goes towards taking care of monthly expenses and paying themselves should be set aside for debt payment. Many people with financial burdens are unable to manage their debts.

Set goals

Set long terms goals. The goals help keep an individual on track toward attaining financial stability. The set goals should not be too ambitious. Deciding on goals to be attained two, three years down the line helps individuals measure their success and modify tactics that are not working. It is also wise to think about retirement when setting long-term goals. Ask about retirement benefits and how to maximize contributions.

When calculating monthly expenditures, try to figure ways of reducing them. Small modifications such as carrying packed lunch to work, cancelling unused club membership, going out once a month, or saving on phone plans can result in significant savings in the end. A little effort goes a long way in attaining financial security. Financial plans require discipline and time. Expect to work on financial plans for months or even years before reaching set goals.

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