The Voice of Mom

Forget 2008. It’s history. It’s gone. It’s so over.

It’s 2009. Time to stop making excuses and start taking charge of your finances. Are you ready? The Voice of Mom is here to help. We asked some experts for their best financial tips to help you leap into the New Year on the right financial foot. This month, you will find financial tips on Mondays and Fridays here on The Voice of Mom.

Here’s a few tips to get you started:

Know what you spend

Whether you use a notebook, a spreadsheet or a full program like Quicken, you need to see where each penny of your money goes. The sooner you start recording what you spend, the sooner you will see the trends and money sucks. Dr. Darshana Hawks of Relationship Success Source says that it will take a year to see the full picture.

“To create a positive and healthy relationship to money, we first must know what happens to it. Just like losing weight, we measure and track our food intake and exercise daily, money works the same way. One the family knows exactly where their money comes from and everything they spend it on, they will then find ways to shift their spending to allocate money towards debt, savings, etc. This is an especially good exercise for children to learn early in life – make it a family event and review the incoming and spending together each month,” Hawks said.

Eliminate the splurges

Obviously, you can’t wait a year to start making changes and trimming the budget. Times are tough now, so start by trimming out the fat.

“One way to gain control of finances is to refrain from splurging–not spending on anything besides the essentials. This may be hard to do, but it also means that when it’s birthday time, maybe you’ll be able to get the gifts that you’ve been wanting (and refraining from buying) all year,” says Vicky Yip, Partner, KismetGiftShop.com. Yip suggests taking advantage of wishlist functions available at online sites, including Kismet.

Think of your kids

Your children learn about finances from you. What are you teaching them through your choices with money? Adam Miller of ElderAdo Financial suggests simplifying your financial life.

“The financial choices you make today are creating your children’s first experiences with money. As they grow they learn from your actions and reactions, this will be with them for the rest of their lives. …  Spend less than you make, and if you are in a hole, stop digging,” Miller said.