AEM Mortgage Minute with Deanna Daughhetee

The start of a new year is the perfect time to reflect on our lives and also to look ahead to the future. Many of us make New Year’s resolutions to improve various aspects of our lives – from families and friendships to careers and finances.

2008 was certainly a difficult year financially for many people. Housing values declined, the stock market tumbled and unemployment figures rose. Many economic experts predict that 2009 will be another challenging year, but there are things you can do to better position yourself for the year ahead.

The first step is to sit down and take an honest assessment of your financial picture. This can be difficult, but it is necessary to improve your situation. Review your income and expenses and determine where you can cut back in order to reduce expenses or increase savings to give you better protection in the upcoming months’ uncertainties. Here are some ideas to consider:

• Eat out less
• Cut out that daily cup of gourmet coffee—or other daily non-necessity
• Carpool to work and to kids’ activities
• Pay off credit cards and other high interest debt
• Cut back on discretionary spending such as clothes, shoes, magazines and books
• Choose low or no-cost entertainment options
• Plan your weekly menus to reduce trips to the grocery store

The sooner you do, the better position you will be in. Making some sacrifices in the short-term will pay off big by helping to stabilize your family’s long term financial situation.

One way to help give you protection is by taking advantage of today’s low interest rates. Your home is a valuable financial tool and if you use it wisely it can help you through challenging financial times. You may be able to reduce your total monthly debt, your total long-term debt or help you increase savings to weather a job loss or other unexpected situation.

The economy may continue to struggle, but you can improve your situation by resolving to take control of your finances in 2009.