Good money management includes diversifying your investments, keeping credit cards under control and reviewing pensions, writes Ian Mitchell.

There are 10 financial New Year resolutions you should make for 2003.

1. Make sure that your bank deposits are competitive.

Since the December cuts in the European Central Bank rate, deposit rates are going to fall further behind inflation. Make sure that you are achieving the highest possible return for your money.

2. Ensure that a proportion of your funds is in an asset-backed investment.

The gap between deposit rates and Irish inflation is widening. This means that the real value of money on deposit is falling.

Investors should seek advice as to how to put a strategy in place to retain the real value of their funds.

3. Ensure that your investments are well diversified.

The greater the spread of investment areas covered by your portfolio the more opportunity for growth you will have.

4. Take a look at alternative investment strategies and products.

If you want to consolidate after a period of speculation, perhaps you ought to look at hedge funds as an option for some of your funds.

These can, however, be expensive products and they are not for the faint hearted, so take independent professional advice.

5. Undergo a strategic review of your pension holdings.

The pensions world is changing, and you need to ensure that your plan is doing what you want it to do and that you are paying a fair and reasonable level of charges to your provider.

6. Overhaul your life and health-protection policies. Costs have come down over the last few years and savings obtainable by shopping around for a replacement policy can be significant.

Care must be taken in this process, however, to ensure that you are always covered and that there is no reduction in the breadth of policy cover.

7. If you have a mortgage, ensure that you are paying a competitive rate.

Mortgage rates can vary significantly and shopping around is always a prudent course of action and we advise all our clients to review this part of their fiscal affairs annually.

8. Look closely at your credit card situation. It is always best policy to clear your credit card bills monthly, as by doing this you avoid the necessity of paying interest on your purchase costs.

However, if you are unable to do this, shop around and find the best deals for transferring existing card balances.

9. Ensure that your finances are working within a plan and not just in "free flight".

Budgets need to be overhauled every year at least and these exercises need to be repeated on a regular basis to maintain their effect.

In addition to this, you should set savings objectives and target returns for your investments. You should also have a "disaster plan" to ensure financial well-being whether you are ill, healthy, working or retired.

10. Talk to an authorised adviser. An hour of your time may prove to be the best investment you ever made. All advice given should be of a genuinely independent nature and the first meeting is normally free and without any obligation.

Mr Ian Mitchell is general manager at Towry Law