I have never quite worked out why one has to wait for this week in the year to come up with a resolution which is going to get rid of all the bad things we were doing last year and henceforth we will only do good things.

I hope that the Christmas New Year spending spree is not going to lead to wondering when you can get that credit card debt back to a manageable level, or better still get it back to a level where it is paid off every month.

There are two New Year resolutions that I recommend for everyone.

Firstly organise a budget which will cut out credit card interest. This ensures that next year you are not dreading the arrival of your bankcard bill in the mail and because you are not paying interest after tax this is the equivalent of getting at least a 30% discount on your expenses.

Secondly, and most importantly, ensure that the budget includes starting a regular investment program into a managed share fund. This system of a regular investment of the same amount of money into a unit trust where the price is subject to regular fluctuations is a fool proof method of becoming wealthy over time. By buying into share trusts you get the advantage of imputation credits which for the majority of Australian taxpayers means that the income is effectively tax free.

If you smoke now give yourself a financial shock and keep a month’s supply of empty packets. Multiply that number of packets by the cost of each and then multiply that by 12….Result ..a year’s expenditure. Multiply that by 7 and this is what you could have in investments at the end of four or five years.

Because of the huge tax take by the Government on cigarettes you could look at your wealth at the end of five years and send a “thank you” card to the Commissioner of Taxation, who will have contributed the lions share.