January is right around the corner and it’s essential that you start planning ahead (financially) whether that’s on your own or with the help of a financial advisor. The tumultuous events in the financial economy over the last 18 months have demonstrated more than ever the value of having a conservative approach to your fiscal responsibility. Instead of getting your head stuck in the sand, see below for three tips on how to successfully make changes in your financial life as of next year.

1. Get Your Emergency Savings Account Ramped Up. Ensure you have 6 months of living expenses saved up in a liquid savings instrument (e.g. checking account, CD, or interest-bearing savings account).

2. Focus on Debt Reduction. Reduce your highest interest debt as much as possible. Start with your highest interest-bearing liability, usually that’s your credit cards.

3. Do a Top Down Re-evaluation of Your Investment Portfolio. Consider each individual holding (e.g. stocks, bonds, mutual funds) and reduce your exposure among the more exotic, alternative riskier investments.

Just like your grandmother used to say, “It’s important to have savings, don’t take on too much debt, and be careful of what you invest in!”

The Faster Times quoted Anthony Diaz, CFA, financial advisor and vice president of investments at IFC Advisory for his insight and expertise on financial planning in the upcoming year. Feel free to check out How to Get What You Want in 2010 and let us know what you think!