Issue Date: January 17, 2007

Easy Steps for Financial Success in the New Year

By Jody Zink
Licensed Realtor in Ohio & Michigan

Lose more weight, be more organized, save more money. Those are a few of my resolutions in a nutshell. How about yours?

If buying or improving real estate is on your list this year, you might need to do some homework. Start building your team and take some steps to get ready. These include keeping up with your credit scores, reducing your spending and increasing your savings.

Check your credit report at least once a year, if not twice. Being active about it prevents an identity theft from ruining your ability to buy or invest in anything. It alerts you to bad information submitted by credit reporting agencies and helps you paint a healthy credit picture. (Check it for free at annualcreditreport.com)

Get out of debt. It doesn't take a reckless person or a wild spending spree to create a crisis. A consistent pattern of spending just a little more than you make can lead to a serious problem over time. Unpaid credit card balances are the worst kind of debt. Make it a priority to come up with a plan to pay these off. If your debt is a hefty one, adding to it is the last thing you need. Stop using your cards and cut the crap. Leave them at home or cut them up. Maybe leave one in your wallet or purse for emergencies.

Another strategy – stop the flood of credit card offers. I used to go to the mailbox to find two or three offers a day, sometimes more. You can force credit bureaus to stop selling your name and address. Dial 1-888-5-OPTOUT for the forms to do this. Doing so helps eliminates some of the crap. I'm sure there's a more elegant way to put it, but, quite honestly, I'm all for eliminating crap.

Increase your savings. Okay, I still get the lecture from Mom, "People get rich not by what they make, but by what they save." Walking down aisles of any retail establishment, (notably Target) I hear Mom's voice in my head saying, "Ask yourself if you really need it." If you do, then buy it. If you don't, put it back on the shelf. Someone who makes $250,000 a year and frivolously spends $300,000 isn't as rich as someone who makes $50,000 and spends $45,000. Pay yourself first. Don't buy stuff you don't need.

So, if your resolutions include real estate, surround yourself with trusted, smart people. Find a good Realtor who understands your needs. Talk to a mortgage professional. Get to know a home inspector, an attorney, an appraiser and insurance agent. Get referrals from friends. Consider a fix-it crew and/or property management if necessary. That may sound like a lot to do, but getting and following good advice up front, will pay dividends down the road.

Jody Zink is a licensed REALTOR in Ohio and Michigan with the Loss Realty Group. Her column appears every other week in the Toledo Free Press. She can be reached at jody@jodyzinkrealtor.com or 419-725-1881.