Financial Resolutions For 2008

It's almost 2008 and the thoughts of Fools may be turning to New Year's resolutions. So we asked TMF staff members about their plans for 2008 and here are the results.

Please bear in mind that TMF staff outside the editorial team aren't necessarily financial experts. The aim of this email is to stimulate New Year thoughts and have some fun!

1. Mine is to find a good rewards credit card as I like buying expensive things (flatscreen TVs, consoles, computers) on my credit card and whilst I don't pay any interest as I usually pay it off quickly, I'm also aware I'm missing out on good free rewards. It's hardly the most original of tales but it is my own.

Ben, Designer

2. It may sound simple but I NEED to make sure that my outgoings don't exceed incomings. Bad habit.

Lena, Product Executive

3. Ok, so my financial resolution for 2008 is to invest my savings. I've been a bit lazy the last couple of years and not reviewed where I've put my money. So 2008 is going to be about reviewing everything!

Sonia, Head of PR

4. I'm about as Foolish as you can possibly get, so it's just two small things for me.

I'll be quicker at notifying all the financial companies I'm linked with when I change address in future. (I move around a lot, but I can be rather slow at notifying companies/the council, which can damage my credit rating and it leaves me open to fraud, because letters go to the wrong address.)

I'll be more diligent in switching gas and electricity providers to save money.

However, I don't believe in waiting for the New Year. If you've got a resolution, start now!

Neil, Personal Finance Writer

5. I have a resolution of not wasting £40k in a year. In other words, I want to save 40 grand, but the spending below will come out of that pot. This isn't just my resolution, but mine and my fiancée's.

Why? A few reasons...

Firstly a LOT of money is going to be spent in 2008 as I'm getting married, going away on honeymoon, and having another holiday later in the year. I'm also buying a car, all of which is money that will come out of the £40k pot. On top of that I really feel I need to bolster my savings so I have something financial to show for my efforts in 2008 and have the luxury of not worrying about anything needi ng financing in the short term.

How?

We started warming up to this over the past couple of months; we now have our monthly bills down as far as we can get them by swapping various suppliers via Fool.co.uk, and we make sure we don't waste food whilst trying not to impulse purchase. We also have a budget which we regularly update and check.

On top of all that, we've sorted our mortgages out and have managed to pay off all our other debts. And we're doing everything we can to boost our income.

It's a hard target; I know we won't finish the year with an extra 40 grand in the bank as we'll be spending a good chunk of that; it won't take much to knock us off, just one bad month in the 12. But then again, if it's not a big mountain, why bother to climb it?

Dave, IT Developer

6. My wife and I have just finished paying off a big debt this month. It was my wife's university MSc (around £13k). That means that from January we'll start investing a monthly amount, thinking about the long term.

The strategy for 2008 is to put 50% of the available money in a fixed income fund in Brazil (it pays around 10% interest gross/year). [Leo is Brazilian- Ed.]And the other 50% in variable income in the UK, possibly an ETF like the FTSE All Shares or some other tracker, like a BRIC tracker.

We also keep a separate account for emergencies / unexpected expenses during the year. It's a standard savings account from HSBC and we usually put £100 to £200 a month on this account.

There's no main goal for the savings. We'd just like to have some money for the future.

Leo, IT Developer

7. My new year's resolution is to spend less money on recreation - i.e. late night drinking sessions at pub/clubs, eating out etc and to invest my money by improving my property.

Having jammed my foot firmly onto the first rung of the property ladder in the early part of 2007 with a house that had no central heating and was generally in a bit of a state, I found I would stay out after work rather than spend time at home because it isn't the most pleasant place to eat and spend time. I found it to be a bit of a vicious circle of not wanting to spend time at home because it wasn't very pleasant, and being unable to make my home pleasant because I h ad spent all my money whilst out on the town!!

What I need to do is save money by spending time working on the house (I can't spend if I'm knee deep in sawdust) and spend what money I do spend on house improvements. In the meantime I will just have to embrace the living-in-a-building-site state of being until I reach a fiscal & domestic equilibrium where I can begin enjoying myself again. Maybe I'll then lay on a house party and hopefully the house will be worth a few more quid....

Stuart, Designer

8. Mine is: 'FINALLY start contributing to a pension.

This is my first full-time job, and I think I'll have enough at the end of the month to tuck at least some of my pay away. Also, at the ripe old age of 23, I think it's time for me to get a move-on. From reading articles at The Fool, I've realised that pensions are not just something you should start thinking about in your thirties (I used to think they didn't really matter until then). I've learnt that starting early can make a big difference to the eventual size of your pension pot -- so that's what I'll be doing!

Szu, News Writer

9. Well, mine is to either sell or rent my house out. I've had to move out mid-renovation, due to my partner's job relocation, and so am currently responsible for a mortgage and rent. EEK! So I need desperately to finish the house and let it go. I just need to decide whether I sell it or rent it out.

Once that's sorted,hopefully I should have lots more free cash to start stashing away in a high interest savings account - or possibly start to dabble in investing!

Emma, Publishing Director