Money Mistakes To Avoid In 2011

Essence Magazine's Senior Finance and Careers Editor Tanisha A. Sykes will be here to provide a blueprint to bring your finances back to life in the new year.

FOR EVERYONE:

IGNORING YOUR MONEY STYLE
Are you a saver, spender, hoarder, planner or a little bit of all of them? If one week you have more than enough money, but the next, you don't have any, then figure out your money style.
To Do: Take the Moneymax Personality Profile at www.finpsych.com . It's a brief questionnaire that will help you determine your goals and objectives as well as how you manage money.

LIVING WITHOUT A BUDGET
If you don't know how much money you earn or where your money is going, you are bound to overspend. A budget keeps you informed about your money and helps you reach financial goals faster.
To Do: Record your bills in one place. It could be a notebook, in a money management program like Quicken or on a free budgeting site such as mint.com.

NOT SETTING REALISTIC GOALS
Everyone has something financial to fix. It could be saving $5,000 over the next year or even buying a home. The problem is trying to do everything at once, especially on a limited income.
To Do: Write down three goals to accomplish this year. Set a timeline, the amount and a plan on how to tackle one goal at a time.

NEGLECTING YOUR CREDIT
This is a big one. If your credit score is below 700, don't expect good interest rates on loans. High unemployment or illness could be the reason you fell behind on payments. If that's the case, keep the creditors informed, tell them you have a financial hardship and ask for revised payment plan.
To Do: Order a free credit report from annualcreditreport.com to review your credit information.

FOR COUPLES

NOT DISCUSSING FINANCES
How can you get on the same page if you never talk about your financial goals and dreams? Even if the information in negative, such as bad credit, tell your partner. You can work it out together.
To Do: Set up a date night for your money. Every two weeks, bring the bills, a calculator and your goals to discuss progress and pay the bills as a team.

PLAYING THE BLAME GAME
Whether it's an overtapped credit card or a hidden pair of shoes, faulting the other person is toxic to the relationship. Instead of retreating to your separate corners, follow these tips.
To Do: Take responsibility if you've spent money foolishly and vow to never do it again. Then sit down with your partner to figure out how to clear up the mistake. It will take time, but will be worth the effort.