It is that time of year again - time to make your New Year's resolutions for 2006. Whether your goal is to shed a few pounds, quit smoking, spend more time with your family and friends or improve your life in some other way it's a good time to reflect on the changes we want or need in our lives and start putting together a plan for how to achieve these important goals.

If getting your finances in order happens to be one of your resolutions for 2006, let me share some ideas with you that you might find helpful:

1. Give yourself a raise: Bump the contributions to your retirement plan by just 1% and you may be surprised by how such a small increase in your 401k contributions can positively impact your retirement nest egg. At the very least, make sure you are contributing up to your company's match-after all it is free money! On the other hand, if you have already maxed out on your contributions, consider starting a Roth IRA or other dedicated retirement savings account.
   
   
2. Give yourself some credit: Beyond patting yourself on the back for curbing your spending habits and becoming a bit more frugal in 2005, make sure to check your credit report for inaccuracies that could adverse affect your credit score. Back in September, a new law was passed that allows Americans to obtain a credit report once a year for free. (http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm) This report will give you a history of your borrowing habits and a good indication of what your chances are for getting loans in the future. It also gives you the opportunity to close out some old credit accounts that you no longer use and watch for any evidence of identity theft.
   
   
3. Reduce your household deficit: If you are like most Americans you are probably paying too much on your debt. Make a goal of paying off the highest-rate credit card or loan. Sure, you could just flip credit cards and keep chasing the 0% credit card offers but who are you kidding? Eventually it will catch up with you and it could negatively impact your credit score. Get rid of highest-rate debt first! Don't be afraid to check with all your credit card companies and ask for a reduction in your interest rates.
   
   
4. Compartmentalize your money: One of the best ideas I share with people involves funding your goals separately. My wife Kathy and I have savings accounts for vacation, Adirondack dream house, tax escrow, long-term spending and immediate bills - and, of course, retirement and education too. This way we can individually track the progress we are making towards each of our goals. It is also forces us to prioritize our cash flow and be certain that every dollar coming in goes toward what we need as well as what we want to obtain in the future.
   
   
5. Protect yourself and your family: In the past several years, American's have experienced many disasters-some brought on by the wrath of nature, others man-made tragedies. These experiences have heightened our awareness of the vulnerability of the lives of friends, family and neighbors as well as our homes and important possessions. As for your home, cars and personal items - make sure you have appropriate insurance coverage to support replacement costs. Personally I rely on the expert opinion of my agent at Allstate, Duke Hutchings - (585-223-2533). As for the financial protection of your loved ones - make sure you have the appropriate amount and type of life insurance. We offer a free analysis for anyone who isn't quite sure of the desirable coverage levels.
   
   
6. Address the reality of death: Eventually each of us will die and leave behind loved ones and assets. Knowing this, why not plan ahead to preserve wealth and protect your family for generations? Although you have no control over when you die, you do have control over how you die - and the experience your survivors will encounter. Prepare a Will, health care proxy, durable power of attorney and end-of-life plan today. Colgan Capital specializes in handling all of these matters and would offer all of our clients a free one-hour consultation on end-of-life planning issues. In 2006, we will be launching a ground-breaking website that will help you take control of every aspect of your end-of-life plan.
   
   
7. Reward yourself: Yes, give yourself a reward for all this hard work :) Get creative and come up with a reward that will yield so much satisfaction that the anticipation itself will drive you to achieve your goals. Maybe it's a day with your love under a tree at the park or perhaps it involves doing something completely selfish such as watching inspiring movies all by yourself. Whatever may motivate you - write it down and begin the sentence with "When I achieve this goal, I will reward myself by…" Positive statements put in writing have been proven to influence your behavior.
   
   

Colgan Capital is committed to helping people balance their passion for living life to the fullest while planning ahead for the future. If there is anything we can do to help you achieve your financial goals in 2006, please let us know. We have a lot more great ideas to share with you.

May you and your loved ones have the best year yet.

Sincerely,
Mark