By Lorna Tan

Many of us are only too glad to bid farewell to 2008, a year marked by much fear and panic resulting from the financial meltdown. Across the globe, unemployment rose, petrol prices rocketed up (before easing slightly) and house prices plummeted.

Financial experts warn of another tough year ahead.

But just because the outlook is bleak, this is no time to bury your head in the sand and hope the sun is shining again when you pull it out.

The start of any new year, let alone a year such as this, is an opportune time to dust down some of our old, longstanding financial habits, priorities and assumptions and make new resolutions.

Here are 10 good money habits to help you do just that.

1 Take stock of your cash position

The standard financial advice during ordinary times is to have sufficient cash set aside to cover at least six months of your monthly household expenses.

With the current economic downturn, having six months may not be enough, says Ms Anne Tay, OCBC Bank's vice-president of group wealth management. This is because we should cater for contingencies such as pay cuts, involuntary leave or an unexpected job loss.

Fundsupermart research manager Mah Ching Cheng suggests that a good rule of thumb is to save up to 12 months of your monthly expenditure, depending on how risk averse you are.

This means that if your monthly expenditure is $2,000, a buffer of up to $24,000 would be a good amount to keep in a deposit account.

2 Set a realistic budget

This is considered by Mr Patrick Lim, associate director of financial advisory firm PromiseLand, to be the most basic good money habit and tool to control your finances.

A realistic budget that is drawn up and adhered to will go a long way towards helping one live within one's means.

'By keeping track of where every dollar is spent, the budget shows where the money goes to and how much is left over,' he said.

In fact, why not go a step further, raise the bar and pose a personal challenge to yourself to become debt-free within a reasonable timeframe, says Alpha Financial Advisers manager Cai Zong Zhen.

Another tip is to review your budget every 12 months, or when your circumstances change, such as when you receive a windfall or inheritance, or when you have a new addition to your family.

3 Paying yourself first

A related habit to budgeting is to adopt a disciplined approach to saving.

Every month, allocate a portion your income to savings, insurance and investments to create wealth, before paying for your other expenses. Increase this portion when your income goes up, such as when you have pay increments or annual bonuses.

To up one's savings, Ms Tay recommends reducing 'wastage' in one's daily spending. For example, avoid impulse buying, dine out less and consolidate shopping trips.

'Buy in one go rather than make frequent shopping trips because you tend to spend less with fewer trips, and look for cheaper alternatives or substitute goods and services if you need to spend,' she added.