Not Made Of Money

If you’ve decided that 2008 is going to be the year that you get control of your finances, you may be feeling a little apprehensive. Saying that you’re going to straighten out your finances sounds great, but do you know how you’re going to accomplish this plan? Setting some smaller goals, or benchmarks, will help you to stay motivated as you venture down the road to fiscal responsibility.

Draft a budget. The first step in getting your financial house in order is to come up with a budget. Before you panic, be confident that a budget doesn’t necessarily mean that you have to cut out every luxury in your life. You will, however, have to decide which luxuries you’re going to keep and plan for them in your budget.

Start a reserve fund. Having an emergency fund is vital to staying out of debt. If you don’t currently have one, make it a priority to build one this year.

Make a short-term savings goal. Build your savings reflex by saving for some small goal that you can really look forward to. Maybe you’ve wanted a special pair of shoes. Maybe you want to take a trip in the fall. Whatever your goal is, start making regular contributions to a fund set aside for whatever goal is important to you. Because this goal is one that you’ll attain relatively quickly, you won’t have to wait long to feel like you’ve accomplished something. And you’ll get to treat yourself when you’ve reached your savings goal.

Commit to paying off some of your debt. If you can pay off your debt in 2008, you certainly should, but don’t feel bad if you can’t. Instead, commit to doing what you can. Consider giving up some little extra and earmarking that money to pay towards your debt. You could decide to start bringing your own lunch to work two days each week rather than eating out all five days. By saving approximately fifteen dollars each week, you’ll quickly have an additional forty dollars each month to send to your debtor. Remember that the goal here doesn’t have to be to pay the debt off right away. You’re just trying to get used to making regular payments towards your debt.

Setting some attainable goals for 2008 is a sure-fire way to jump-start your journey to financial wellness. Each time you achieve one of your goals you’ll be one step further on the road to fiscal responsibility.

• Tracking Your Money
• Be the Author of Your Own Financial Plan

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