Let's Make Some New Year's Resolutions!

Folks, I don't know about you, but I'm feeling the need to set some goals for this year. What are your financial goals for this year? Here's mine.

• Increase my emergency fund by $4500

I'm a huge believer in having a cash emergency fund as a buffer between my family and murphy. There's no better way to keep unexpected expenses from driving us to take out an loan. We are currently debt-free other than our house. However, 2007 was an emergency fund wrecker year for us. My son had to have all four wisdom teeth removed ($1200), I had not one, but two car accidents ($3000), my car needed repairing ($400), my wife injured her back ($600) and more. We've got to work hard this year to build our savings back up!

• Decrease my total cost of insurance by a total of $500 per year

Insurance costs are eating my family alive. We've got to find a way to save money. The main ways I plan to investigate to accomplish this goal is by shopping around and/or bundling our homeowners, automobile and umbrella liability insurance policies.

• Review and Optimize my 401K Plan

It's time for a 401K checkup. In the last couple of years, some new options have become available including the Roth 401K, the ability to transfer my money out of the company plan to an individual retirement account and a "Goal Manager" feature. I need to evaluate all these options and make sure my retirement account is in the best shape possible, with regards to flexibility, tax treatment, growth rate and management fees.

Ok! There's my goals for this year. What are yours?

This blog is about you. I'm not going to fill it with information about me. However, to best understand this blog, people to know where I'm coming from. I think it would be helpful for you to know a little about myself and my beliefs about money. Here goes.

• I'm a Christian and therefore my beliefs about money are based on what the Bible says. I believe the Bible is the inerrant Word of God.
• I'm 45 years old with a wife and two children. My wife and I have been happily married for 21 years now. My children are both teenagers now and are great kids. I'm very proud of them.
• I am an Electrical Engineer and have been working at the same company for 27 years.

As you can see, I'm coming from a conservative background. That bleeds through in my beliefs and attitudes about money too. Here's some of my core beliefs about money.

• Money is neither good nor evil. Its how we use it that makes it good or bad.
• Wealth will not bring us happiness. As a matter of fact, I think having lots of money:
• sometimes makes it harder for us to recognize our dependence on God because we are seemingly self-sufficient
• sometimes makes it harder for us to raise children of character because if we're wealthy, its harder to teach lessons like "sometimes we must be patient" and "God will supply all our needs" and "only a relationship with Jesus Christ will bring lasting peace and happiness"
• We are all stewards over the money (and other things) that God gives us to manage. It's an important responsibility.

Now. My core beliefs about money are out there. Let's get started.