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each - except pay as much as possible on the account with the highest interest rate. Once that one's paid off, move to the next-highest rate account and so on.
• Another smart move is to have an emergency fund in case of financial upheaval (layoff, medical emergency, unexpected car repairs, etc.) Ideally you should save enough to cover six months' of expenses, but don't be discouraged if that sounds insurmountable: Start slowly by saving a few dollars each week. You won't miss it and your little nest egg might just save you from needing an expensive short-term loan to cover an unplanned bill.
• If something terrible happened to you, would your family be protected financially? Make sure you have a valid will, durable power of attorney, health care proxy and living will. Numerous books, online articles and sample forms are available if you want to draft them yourself, but you should probably review your documents with a financial advisor or attorney to avoid potential legal problems. Also, make sure you have adequate life and disability insurance.
• It's debatable how much Social Security will be able to contribute toward your retirement income in coming decades, so if you're not already participating in your employer's 401(k) plan or an IRA, make that one of your top financial resolutions.
• Sticking to resolutions is never easy - if it were, we'd already be doing them. But striving to improve your financial situation now will pay off big-time down the road.
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• Jason Alderman directs Visa's financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney.
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