A new year, a new money mantra

Face it. We're all overspent during the holidays. Let's just accept it and move on. But this year, be prepared to answer the proverbial question about your resolutions this way:

I am only going to spend money on things that I need — not things that I want.

Yes, there's a difference. For many people, it takes some educating and time and reeducating about what exactly constitutes a need versus a want. For instance, we need to eat food to live, but we want to eat lobster. See the difference? If you can dedicate yourself to only spending money on things you actually need, such as food, clothing and shelter, you will end up with more money at the end of each and every month. Imagine that!

I am going to take my credit cards and burn them in a ritual bonfire.

Credit card debt is not your friend, and using credit cards is not necessary or required. If you need something, you can pay for it with — dare I say it — cash. Remember cash? Yes, that green stuff still exists, and the basic tenet of your life should be: If I can't pay for it with cash, I can't get it. Period.

I am going to save 15 percent of my income.

Ideally, you are going to actually save half of your income. Yes, I went ahead and jumped from 15 percent to half of your money. Half? Am I crazy? No, actually I'm just jealous. If you're married and both working, you should be saving one half and living off of one income only. This is not only the prudent thing to do, but it will help you save for vacations, toys, retirement, kids, college and more — all without breaking a sweat. If you're not married or only have one spouse working, you can still aim for living on half of your income. Sure, you'll forfeit material items, but that's worth the tenfold decrease in stress and fears over money. Plus, now you have less junk to clean over and over again.