Financial resolutions: Can you keep it?

More than half of 2007 has passed us by, and along with it a couple of the New Year resolutions that were made on the first day of January. It seems that almost all of us have managed to break one or all the resolutions that we had promised to keep. Which takes me to the point: are resolutions meant to be broken? Here are some of the common ones.

Resolution number one: deal with the credit monster

All of us are slaves to our credit cards. It’s our comfort blanket; pays for utility, retail therapy, as well as happy weekends. It is only when we need to pay up for our purchases that we look at it as a horrific monster. And, post-Christmas is the best time to realise this fact. So, an end to all unsecured loans in the form of credit and store cards is naturally the first and most easily breakable resolution.

Resolution number two: Quit smoking

As far as popularity of failed resolutions goes, this is certainly one of the winners. How many of us have vowed to divorce the cancer stick and find a more attractive soul mate instead? And, how many times have we failed? Countless right! Well, if you are one of those who believe in statistics, it seems that we could save up to £1,300 per year if go cold turkey on the Marlboro. This money could well pay off our unsecured loans (read credit card debts).

Resolution number three: Save, save, save

Money saved is money earned. So, yeah, we believe in it. We get the concept behind it; it’s just the execution part that we lack. It’s never too late to start a pension fund. The state pension is not to be relied upon for a comfortable retirement. It only provides £105.45 to single persons and £160.95 to couples per week inclusive of the guaranteed income top-up. So, if you have no savings, then you are in a soup. We all know it, but it’s at the final stage that we somehow fail.

Resolution number four: owe your own dig

Not a very common resolution, but still makes it to the list because everyone of us have at one point of time or the other thought about owing our own home and saving up on the rent. Not only do you have a home of your own, you also have an asset that you can liquefy in times of need. The APR against secured credit is more lucrative than unsecured loans. The property can also be used as an investment. Some lucrative pieces of real estate include:

Residential property in Central London (rent reported to grow at 8% pa)

Commercial property in London's West End, particularly Mayfair and St James where rents are expected to grow 7% over the next year

day property in Turkey, relatively unknown and therefore cheap. This secular Islamic state is slated to become a popular destination amongst real estate developers.

erty in Japan is starting to rise again as stagflation comes to an end.

Resolution number five: take control of your finances

Perhaps the most favourite resolution the world over, this one is a sure star in the failed resolution list. In a world that is fast spiraling out of control the least we can do is to take control of our personal finances and restore order in our own universe. A noble thought but then again prone to failure. However, if you do plan to stick to it, it might do you good to start budgeting and cut down on the mortgage or unsecured loans payments if you do have any.