We bid farewell for 2009 and now we are welcoming 2010 with open arms. Working on a new year’s resolution and getting back in shape would be the things most people do as the year begins. It is also important to start the year by settling your finances and free yourself from the debts you have last year. Free yourself from it! Here’s the list of 10 financial new year resolutions to help you manage your expenses.

1. Make your debts your priority.

It’s time for payback from the important things you invested and bought in 2009. Don’t let your debts grow higher that you can’t reach them anymore. Organize your financial obligations with the most expensive rates on the top of the list. The one with high rates is usually your credit card debts. To budget your payment for the bills, organize the most expensive ones down to the least.

2. Don’t forget the basics.

Although we are provided with great technologies today, we can also use alternatives that are not expensive. Turn off unused electricity at home, instead of spending it too much. Let the open air cool you instead of using airconditioners. It’s simple and it can help you save on your electricity bill. As much as possible don’t use home cleaning services home cleaning services when you would want to clean your house. Find time and do it yourself. Cleaning services’ rates can be expenssive especially if you need their service every other week.

3. Save more, spend less

I know it’s difficult to resist ourselves whenever we shop. Want and Need are two differences. Don’t use too much of your credit card when you buy things that you need. Use your credit card for emergency purposes only (e.g. you run out of cash, etc.). This can help you lessen your credit card debts. Spend your expenses on cash if possible.

4. Get a Life Insurance

Better get one if you don’t have it yet. Sustain the monthly payment for it and don’t think of it as a burden because in the long run it can help you a lot more than you ever think it would be. Also, see the difference when getting a cheaper and expensive insurance.

5. Start a pension

According to the rule of thumb, paying half of your age as a percentage of your salary can help you afford a reasonable retirement. Start getting a pension now. The earlier, the better.

6. Shift to cheaper mortgage rates

Consider transferring to a cheaper and more variable rate deal if your mortgage is coming to an end.

7. Claim all the benefits you are entitled in to.

We pay taxes all our lives but some people do not claim things they are entitled into. Many of the people do not realize the help that are available for them. Know your benefits and rewards for being a good citizen.

8. Close unnecessary and useless accounts

Do you really need to have several banking accounts? Imagine the $8 charge for your checking account can sum up to $8,500 for thirty years and add up to our taxes. So don’t go for free offers of banks and financial institutions!

9. Reward yourself

Life is difficult nowadays and everything must be achieved with a lot of effort. Work and everyday expenses can be stressful, don’t let it get into you that you almost forget about yourself. Relax and smell the flowers in the garden. Have a recreation. Reward yourself for the success you achieved, it doesn’t need to be expensive.

10. Be generous.

Yes, you got it right. I know most of the tips here are all about trimming down your expenses and saving stuffs but it is always better to give than to receive. Money’s value can be realized until you give it. It’s one of the most effective way. You’ll never know how much promise a $20 contains. Someone might remember your kindness for the years to come if you show genuine generosity. It’s a powerful way of changing people’s lives for the better when you give a better financial freedom.