After the year that we’ve all been through, it’s not surprising at all that we all look to 2010 with high hopes for a better year. But hoping, having faith and  acting upon this wish are different things.

So what do you do to ensure that you make this year financially better?

SAVE Up

We’ve all been taught to save for a rainy day but many of us never did, thinking the good times will last forever. This is partly why the financial crisis sweeping the world swept us all so hard… and so fast.

Due to the fact that most people did not have REAL money saved up, the minute credit was no longer extended to us, we could not make ends meet anymore. Of course, some can argue – and rightfully so – that they had money saved up at the bank but the bank folded up. Still, those you had money saved were better off, or at better for a longer period of time, that those who did not.

So starting TODAY, save as much money as you can. Get rid (read: sell) of anything and everything you don’t really need and convert that asset into cold hard cash you can keep for a rainy day.

Go back to basics and re-train yourself to be happy with the simple stuff, not the material ones.

Use Debit Cards Instead of Credit Cards

Debit cards are financial instruments directly linked to your savings. You’re not buying things in credit. Instead, you paid with what you had in the bank. If you don’t have the funds, you can’t use the card to buy.

The advantage with debit cards is that like credit cards you don’t need to bring around cash all the time. It also helps train you to bu only what you can afford at exactly that time.

Ditch Credit Cards (or At Least, Use them Sparingly)

There’s no denying that credit cards CAN be useful, especially during emergencies. However, we’ve become a ‘credit card generation’ where we buy things based on money that does not exist or money that we do not actually have in our pockets.

This has made the buying process ‘easier’ but with each credit card charge, we’ve made our lives harder. Instead of looking towards our paychecks and what we can purchase with the money received, we’ve spent all the money (and then some) already!

So seriously, do yourself a BIG FAVOR and keep in mind that using credit cards is not a way to live your life. They should only be used as a last resort.