Premium ContentMouse over Home then click on Premium Content for information.Kaitlin Carlson, a full-time student at the University of Nebraska at Omaha, already knows what her New Year's resolution will be.
The 23-year-old Papillion resident said her No. 1 priority for 2012 is to put at least $2,000 into her savings account.
She's not alone.
A survey by Boston-based financial services firm Fidelity Investments indicates that of Americans who are considering financial resolutions, 46 percent want to save more money in 2012, with a median annual target of $2,400.
That's double last year's $1,200 savings resolution. Other top financial resolutions include spending less money, paying off debt and saving for retirement.
Those are all realistic goals that just about anyone can accomplish, local experts say.
Carlson is a part-time employee at UNO while working toward a degree in biology with a minor in environmental studies. She's building her savings so she can take a wildlife research internship overseas before she graduates. She said most wildlife internships require her to pay for her own travel and living expenses.
"I just want as much hands-on experience as possible so I can get a good, stable job," Carlson said. "So saving money is my biggest goal for next year."
She plans to set up an automatic withdrawal into her savings account and is hiding her credit cards after the holidays. She isn't eating out as much, chooses matinee movies over evening ones and limits how much she goes out with friends during the weekends. When she does go out, she seeks drink specials and happy hours. Entertainment "adds up the quickest," she said.
Though Carlson is off to a good start, the experts offer other helpful ideas to cut costs, save money and meet financial goals.
More tips from four local financial experts to make financial resolutions realistic in 2012:
Michaela Harper, director of community education at Credit Advisors Foundation in Omaha, advises making a plan and starting small.
"Some experts say six months of living expenses should be set aside in savings, but that seems insurmountable to most people," she said. "Break it down in baby steps. People should consider a likely stumbling block like a flat tire or a car battery going out, figure out how much that would cost to fix and save enough for that."
Harper said anyone can save money regardless of debt and financial situations. She said the line between wants and needs often gets blurred and consumers need to regularly evaluate where they're spending money.
"Some people forget cable is actually not a necessity," she said. "And there's a difference between being clothed and being fashion forward." If you must have a cell phone, consider getting a cheaper version. If you must have cable, downgrade to the lesser package. You can save money by inviting friends over rather than going out or attending free events. "And do you really need that $5 coffee every week?"
Track every single dollar bill, said Michael Frantz, vice president and branch manager of Fidelity's Omaha investor center. "That way you know exactly what's going out the door every month. It's eye-opening."
He said tracking spending helps people to see how much of their income is being spent on a particular area such as food or housing, and lets them see where easy adjustments can be made. "Even if you think you have a strategy for cutting costs, it is still imperative to know where your money is going," he said.
Aron Huddleston, a vice president at Manarin Investment Counsel of Omaha, said analyzing debt is critical.
Consumers should write down the balance due and interest rate on each debt and focus on paying off the debt with the highest interest rate first — not the biggest balance first.
The financial market is tilted toward debtors and borrowers right now, he said, so it's a good time to consider consolidating debt to pay a lower interest rate or, if possible, to roll over debt into a mortgage loan with deductible interest. Debtors also can talk to their creditors to consider lower payments, lower interest rates or extended payoff times.
Take advantage of free money. Dave Blair, an investment adviser at Manarin Investment Counsel of Omaha, said most people fail at saving because they procrastinate.
It's important, if you have the opportunity, to invest in your company's 401k plan as soon as possible. Even contributing a small percentage to start will benefit you in the long run. "It's like putting in 80 cents and getting a $1 back," he said. "It's free money."
One way to contribute more money to a 401k plan is to cut costs elsewhere. And one of the most overlooked potential cost-savers is insurance. Shop around for better rates or raise your deductibles to decrease your premium. If you're a homeowner, make sure your home insurance only covers the home and not the value of the lot.
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