Four resolutions that could help you manage your money

The new year is a time for resolutions. Here are four financial resolutions suggested by Jessie L. Wiebe of Hillsboro State Bank.

• Create a savings plan. Pay yourself first. When you are getting started, getting in the habit of saving is more important than the amount you save. Determine an amount and put that much aside each month or pay period. Ask your employer if you can automatically deposit it to your savings account.
• Create a budget and stick to it. Determine what bills are constant, those which have to be paid each month. Once those are subtracted from your income, the remainder can be allocated toward other things and entertainment.
• Borrow wisely. Credit can be a good thing if managed wisely. When borrowing, do not allow the term of the loan to exceed the life of the product you are purchasing. Credit cards have their place but can be traps if a person charges on a credit card without a plan to pay it off. A $10,000 credit card bill at 18 percent interest will take 40 years to pay off if only the minimum payment is made each month.
• If you have equity in your home and substantial credit card debt, you may want to consider refinancing your home while interest rates are low to pay off the debt of higher-interest loans and credit cards.