10 financial resolutions that will change your life in 2011.

The three most common things people make resolutions about? Food. Exercise. Money. This is no doubt because most of us did too much of the first, not enough of the second and blew the third out of the water over Christmas.

If you’re determined to get your financial s#@t in order this year, we have good news. Mamamia is going to be running regular content about money, how to make more of it and make the most of what you already have.

In today’s first post by our new financial guru Penelope Joye*, she imparts some invaluable advice for 2011.

Penelope writes…

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So you’ve made a list of new years resolutions. Or maybe not? And if you did, or plan to, how far up the list is a resolution to do something about your finances this year? Forgot that one? Don’t want to think about it? Or, as the case may be, it’s at the top! In my many years of advising women our attitude to money and money matters is widely varying. From total disinterest, to an “I’ll think about it tomorrow”, to our number one priority. No matter where you sit on the financial spectrum these resolutions will help to get you into financial shape.

1. Pay yourself first. When I first read this comment I struggled to understand the relevance of it.  However as life became busier, and then crazy, it resonated. Simply put make this year the year you prioritize your finances. Enough said.
2. Start with a budget. I know it sounds sooo tedious but without the foundation you can’t build a solid financial future. Understand what comes in, what goes out and where it’s going. Knowledge is power.
3. Know what you are paid. NET. It sounds obvious but the reality is many women don’t know what this figure is on an annual, monthly, weekly basis. A recently released study commissioned by the Australia Institute indicates that a whopping 42% of women are oblivious to their financial situation. Yikes  I’m backing the other 58% to enjoy their retirement.
4. Surround yourself with experts. If you’re sick you go to a doctor, if you’re building a house you use a builder. If you are not a financial expert find one. Ditto a great accountant and a business coach. Oh, and by the way, you get what you pay for.
5. Claim everything you are legally entitled to. That means keeping those receipts, filling in a car log and checking in with your accountant more than once a year at lodgement time.
6. File your return on time. Check when you need to file (the dates vary depending on whether you use an accountant ) and just do it. Who wants to owe the ATO? And if they owe you a refund you’d be mad not to file on deadline.
7. Credit is not your friend. If you have a credit card, or maybe multiple credit cards, pay them off. Or consolidate the debt to the lowest charging card. Credit card companies charge whopping interest rates so resolve that this year you will put that behind you.
8. Simplify your finances. Close unwanted bank accounts, cancel duplicate credit cards, say no to all those too good to be true, nothing down for 24 months, type offers.
9. Keep a close eye on your bank. Know what you are paying in bank fees. Know what interest rate you are paying on your mortgage. Look for hidden charges like penalties for withdrawing money when you are overseas or on preparing loan documentation. They don’t make billions of dollars in profit for nothing. Keep them on their toes.
10. Ask for a rise. Your employer can always say no but, then again, they might say just say yes.

Note that the above general advice may not be suitable for you as it does not take account of your particular financial situation, needs or objectives.

What’s your biggest money issue? Got plans to change your ways this year?