Friday, January 2, 2009

Personal Finance New Years Resolutions

I find that personal finance and money is no different to any other area of my life. Planning and goal setting are essential in enabling me to reach the outcomes I aspire to.

With the arrival of the new year, now is a good to revisit some of your goals and maybe set a few new ones. In this post I thought I would outline some of my personal finance goals for 2009.

Diversify My Income Streams

Like most people, my main source of income is from my day job. I have a modest portfolio of investments, mainly in the stock market, which produces some income as well. But this investment income is not yet enough to cover our family's expenses. I would like to reduce my reliance on full-time employment by growing my investment portfolio and perhaps diversifying into other areas.

Starting a small business is in the back of my mind as well. But ideally the set-up cost would need to be low and it would need be something I could run on a part-time basis initially. This is really nothing more than an idea for now.

Cutting Our Living Expenses

Last year I made some headway on this front, but I haven't been as diligent as I could have been. I've been going through our household budget and looking at how we can save money on the big-ticket items. It's surprising how much money you can save if you're willing to shop around for the best deal. Negotiating also helps.

Tidy Up My Investment Portfolio

The stock market investments I hold have held up reasonably well through the recent financial turmoil. As you would expect the prices have fallen from their highs but by and large they are in pretty good shape financially. However, I tend to be a collector of stocks and as a consequence the number of securities I hold tends to become a little unwieldy. I need to trim down the number of holdings to a more manageable number.