(This is part of Take Charge of Your Money , a partnership between INQUIRER.net and Citibank to help readers handle their personal finances well.)

Question: Year 2009 is already here and it’s time for New Year’s resolutions once again. Please give us tips on how we can handle our finances better this year especially since the world is experiencing a financial crisis. – Jim

Answer: It takes planning to achieve any goal, especially those for financial well-being. A good financial plan can help you meet your financial goals this coming year. With the financial crisis affecting many countries, we should all resolve to handle our finances better.

Here are our top 10 ways to start over financially this 2009. Make them your New Year’s resolutions and make extra effort to observe them throughout the year. You won’t regret it.

1. Make the budget your best friend. It’s time to stop wondering where your money goes every month. To make sure you will have ample funds to meet your bills, make a budget. Simply write down all your bills then allot money for all of them before you get that latte or that new pair of shoes at the mall.

2. Save at least 10 percent of your income every month. Allot this for your retirement and make sure not to spend this amount before you reach retirement age. By saving little by little every month, you will be able to build up a fund to finance your lifestyle at retirement. Deduct the 10 percent be from your gross income as much as possible.

3. Add to your income. Put in a good performance every day and you may find yourself eligible for a promotion soon, which comes with a salary increase. Find ways to earn extra income as well such as teaching a subject or tutoring on weekends, baking cakes made to order, selling merchandise on the side, or even breeding dogs.

4. Pay the right taxes. We often complain about the lack of infrastructure and social services in the country. Do your share and pay the right taxes so the government will have funds to use to improve their services.

5. Grow your savings. Make your money work for you by parking it in places where it can earn a good amount of interest. Don’t put all your money in your payroll or savings account. Put the bulk of it in other forms of investment that yield more, such as special time deposits, retail treasury bonds, unit investment trust funds or mutual funds. Your bank will be able to help you determine what investment would be suitable for you given your financial goals, your appetite for risk, and time period for investing. Have a chat with your bank manager.

6. Pare down debt. If you have debt, be it credit card debt, auto loan or housing loan, do all you can to reduce the debt faster. Pay up earlier to save on interest expense. Don’t add on more debt if your debt payments already rack up to one-third of your net income every month.

7. Don’t miss paying a bill. It’s essential that you don’t miss a bill payment to avoid late payment fees which will just add to your list of payables. Every time you receive a bill, mark the due date on your planner to make sure you won’t forget about it. To save you time, consider enrolling your bills in the online, mobile or phone payment facility of your bank. Paying will be very easy then from the comfort of your home or office or even on the road.

8. Buy only what you need, and as much as possible, when it’s on sale. It’s nice to have new things but if we don’t really need them, they are a drain on finances and add to the clutter at home. Whenever you are poised to buy, think first if the item is a need or a want. Buy needs only; wants can be indulged in later on when funds allow it.

9. Live within your means. You have heard this often said before, and that’s because it works. Spend only as much as your income will allow. Going further than that will make you live on debt, spending money you have not earned.

10. Build up your emergency fund. Because times can be uncertain, it pays to have a fund to dip into when something unfavorable happens: a job loss, a critical illness, etc. Aim to have an emergency fund that will cover three to six months’ worth of expenses. Put this in an easily accessible account at the bank (e.g., time deposit, unit investment trust fund) or a financial company (e.g., mutual fund). It should be easily accessible, meaning you can get the money fast when you need it. Thus it should not be invested in assets like jewelry or real estate.

With these 10 resolutions, you will be able to manage your finances better. Print out this list and post it in a place where you can see it every day. We wish you the best in 2009!

(INQUIRER.net and Citibank invite readers to ask questions regarding financial matters. Send your questions to personal_finance@inquirer.net or comment through our personal finance blog called MoneySmarts )

*Disclaimer: Readers are solely responsible for their own investment decisions and should thus conduct their own research and due diligence and obtain professional advice. INQUIRER.net will not be liable for any loss or damage caused by a reader's reliance on information obtained from our web site. INQUIRER.net receives no compensation of any kind from companies or industries or funds that are mentioned here.

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