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Resolution revolution

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It's another new year, and once more you've promised yourself (and whoever will listen) that 2007 is the year you will lose weight, stop smoking, ride the Argus Cycle Tour and make friends with your mother-in-rlaw – all noble pursuits, but none of them will make you wealthy, alas.

At the end of the day, being wealthy will help you to achieve your objectives, whatever they maybe. You will be able to afford a personal trainer, join a smoke-enders programme, buy a sleek Lance Armstrong "go-faster bike", or keep you mother-in-law in designer shoes. So what are you waiting for?

Here are the top financial resolutions which, if you keep them, will make you wealthy this year.

Cut down your car expenses
Big, expensive cars cost big bucks to drive. Consider car-pooling or driving a smaller vehicle and cut your personal expenses in half, saving potentially R300 a month.

Examine your grocery bill
Cut out and keep discount coupons, stock up at sales, buy in bulk and plan meals in advance to help reduce bills. Even saving R50 a week can turn into R2 600 annually. Quit the fast food habit – including trips to the deli – and designer coffees, and cut down on going out to lunch and dinner and save big money over the course of the year.

Review all your monthly service contracts
Often, people don't realise that they cols receive the same service for a lot less money, just for asking. Competition in every service industry is driving prices lower.

Anticipate education expenses today
R50 a month placed into an education savings account from the birth of your child will grow to R20 000 by the time the child is 17 (assuming a 7 percent return on investment). It's not a fortune, but it will certainly help to offset some expenses.

Prepare for the holiday shopping season now
If you start saving R100 a month now, you'll have R1 200 by the end of the year to spend on gifts.

Be specific about what you want
Have a clear, concise financial goal for the year. It's not good enough to say, "I want to have my credit card paid off and more money in the bank". Instead you should say, "I want to have the balance on my credit card paid down to zero (whatever the amount owing might be), and over R5 000 in my savings account".

Start a retirement savings plan
If you haven't done so already, investigate a retirement annuity. Your financial planner or accountant should be able to tell you what product is best for you.

Sign up for an automatic savings plan
There are a number of savings plans that will allow you a sign a debit order for a regular monthly amount. It won't be long be long before you forget that you are even saving because you get used to living without the extra cash.

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