12 smart ways to spend in 2012

Wallets are opening up this holiday season. Some of that spending will be rewarding, but some will lead to a debt hangover in 2012. Pausing to develop a spending plan can help limit impulsive credit-card purchases and set your priorities for the coming year.

With that in mind, these 12 ways to spend US$1,200 in 2012 offer a mix of the practical and the indulgent. Even if you don't have that much, the tips may give you some ideas on how to get the most from your money to help you and others.

1. Invest in your career

Take steps to jump-start your career: Pursue a professional certification, sign up for a college course, get proactive about a job search.

Thinking about changing fields? Start with four hours of private coaching to get an assessment, customised resume, targeted cover letter and a plan for your search. Then get group coaching to help brainstorm strategy. Spend some on networking lunches and new clothes so you look sharp and feel confident.

You probably need the outside help. Only 3 per cent of jobs are filled through search firms and 3 per cent through ads.

2. Gear up with a new computer

Dying for a razor-thin MacBook laptop? A $US1,200 budget allows room only for the 11.6-inch MacBook Air (US$1,000); the mid-range, 13.3-inch version runs US$1,300. If a larger screen is essential, try one of the 13-inch Sony S Series laptops, with list prices starting at $800.

3. Support a candidate or cause

Change only comes about through involvement. Consider supporting candidates and issues you're passionate about in the coming election year.

You may not be in position to donate US$1,200, but that amount falls easily within the allowable limits. An individual is allowed to give a maximum US$2,500 per election to a candidate for federal office, or US$5,000 per year to a political action committee that supports federal candidates. State laws vary. Political contributions are not tax-deductible.

4. Invest in a low-risk mutual fund

You can reduce your portfolio's exposure to stock market volatility.

5. Train your inner Olympic athlete

Make the July start of the London Summer Olympics your deadline to get in shape or tackle an international challenge.

Join a gym that fits your budget. Take swim lessons at the Y. Get ready for your own track and field event, such as a local 5K race. Buy a pair of walking or running shoes.

If "faster, higher, stronger" doesn't resonate as your personal motto, US$1,200 should buy a round-trip plane ticket to London or elsewhere during the Olympics. If you can't afford the rest of the journey, take a foreign language class - maybe Russian, to get ready for the 2014 Winter Olympics in Sochi.

6. Make a feel-good investment

Lend money to a fisherman in Cambodia, a beautician in Turkey or a dairy farmer in Colombia through micro-financing - small loans to impoverished entrepreneurs in developing countries or the US. The loans are as small as $25 at Kiva, a non-profit organisation based in San Francisco. You could split up the $1,200 in any number of ways among the would-be borrowers shown at http://www.kiva.org. Lenders get email updates on the projects as their money is repaid.

7. Prepare for mother nature

This year was a record-breaker with a dozen billion-dollar weather disasters, including devastating droughts and wildfires; 19 tropical storms; and Hurricane Irene, which caused more than $73 billion in losses. If 2012 is as bad or worse, are you prepared?

Consider buying a portable generator, which can cost more than $1,000 depending on power and features. Larger "standby" generators that run on propane or natural gas cost more.

8. Help your community

You could play Santa Claus all year round by giving to local organisations you know or are personally involved with. An added plus is that you may be able to get a better sense of how your money is making an impact.

9. Support the arts

See live theatre, concerts, dance.

The amount could be spent in one fell swoop - on a trip to see Broadway shows or on subscriptions to a top-tier arts organisation. For less than $1,200, you can get at least two season tickets to most theatre companies, operas and symphonies.

Or spend it on big-time concerts. After watching Madonna during Super Bowl half-time, maybe you'll want to shell out to see her 2012 tour.

10. Get bookish for relaxation and profit

A basic e-reader like the Nook Simple Touch from Barnes & Noble costs only $99 and can load books from libraries and other bookstores.

You can easily pamper yourself with a book a month, choosing titles like Chad Harbach's heralded debut novel The Art of Fielding (US$25.99), Charles Shield's Kurt Vonnegut biography And So It Goes (US$30) and Erik Larson's In the Garden of Beasts (US$26). The e-versions sell for less than half those amounts.

11. Fund date nights for a year

Strengthen a relationship with a year's worth of date nights with a spouse or special someone.

Stepping out once a week could be a stretch, but you could do it with a little creativity. Think movie tickets, museums, a bottle of wine to share in the park.

12. Prepare for the end

Even if you chuckle at the Mayan prophesy that the end of the world or some other calamity will occur in late 2012, let it be a reminder to take some steps to prepare for your own eventual passing.

Long before retirement, everyone should have an estate plan with a will, beneficiaries for all accounts, a durable power of attorney, a health-care proxy or living will, and possibly trusts for any minor children. And those over 65 should also discuss long-term strategies with an adviser, while they're still able.