Making Your New Year's Money Resolutions Stick

Many women in the Rogue Valley in Oregon are making New Year's resolutions that revolve around money in some way or another, whether it be saving for a vacation, planning for retirement, or buying a new home. Making those resolutions "stick" can be a whole other matter. Two local women discussed their options and looked at what they can do to achieve their financial goals. Although different ages, the two had some things in common. Both are looking for ways to manage money better and to improve the quality of their lives. Kathleen Salzar, a financial planner offered some sound advice on improving their finances.

Virginia M of Ashland is a fifty something mother and grandmother. It would be simple enough to add that she is disabled and lives on a fixed income, but Virginia is so much more than that. Her goal is to survive on the small amount of money she gets each month. "When you're living on Social Security/Disability, there isn't a lot you can do. Once you pay rent and utilities there isn't anything left to cover extras." The average SSI payment is $564 a month. "You work your whole life and raise your kids, but if you become disabled that's too bad for you. So I volunteer, hoping I can at least make a difference in other people's lives." And she does.

"This is a hard situation," Kathleen says. "Many women are in the same boat and when you have to spend all of the money coming in, just to keep up with your basic bills, it does not leave anything left over to save for a rainy day." She suggested Virginia might continue to volunteer because she does benefit from getting food and clothing from the organization she volunteers for. "Or if she has any hobbies that might be incorporated into a part time income, like making and selling craft items for example. That might be something else to think about."

Andrea House is a nursing student at Southern Oregon University. She's working two part time jobs and her husband is also employed part time. Her goal for the new year is to clear up some debt and to start saving some money for a down payment on a house, or to just have some money set aside so they have a "cushion". They are in their early twenties and they do not have any kids yet, so she hopes that might make it easier for them to get caught up on their bills faster. Reflecting about how easy it is to get into debt, Andrea says "You always think that next month, I'll pay it. And then the bill comes in and you make a minimum payment and before you know it you owe so much more [with interest]. The hidden fees on credit cards really get people in trouble."

"It's so important for people to live within their means," says Kathleen. "Our country is saturated with credit and we must learn self control. Getting the credit cards paid off is probably the most important thing. Have one card for emergencies but be sure to pay off the balance each month. Credit card interest really does get people into trouble." She recommends trying to double up on payments rather than making minimum payments if you can. "Anything to get them paid off faster is in your own best interest."