Financial planning this new year 2012

What can you do to ensure financial success in the coming year?

Five tips for planning and achieving your goals:

1. Check your credit reports every three months. Monitoring your credit can help you recognize bad financial habits, like making late payments, which can affect credit score. Regularly checking your credit report is also a way to protect yourself against identity theft.

2. Check for accuracy. Make sure the information on your credit reports is up-to-date and reflects your current credit history. Give yourself at least 30 days to resolve any issues.

3. Know your score. Your credit score helps determine your interest rates on credit purchases. A healthier credit score can help you receive the best interest rate, ultimately putting more money in your pocket as your work toward achieving your financial goals.

4. Create a monthly spending plan and stick to it. Breaking down your spending habits into smaller and more manageable increments can help you achieve your financial goals. Through breaking it down by month, you can also set aside a fixed amount each month to deal with unexpected financial emergencies that may come up later in the year. If you don't have to spend this reserve fund, you can treat it as a year-end bonus, or, even better - put it toward next year's goals.

5. Take additional measures to minimize your exposure to identity theft. In addition to frequently checking your credit, you can sign up for a credit monitoring service that will alert you whenever something changes in your report.

Setting yourself up for a successful financial year means developing plans now that you can execute as the year goes on.