Financial New Year Resolutions
I'm In Debt
- Posted:
1/1/2009
Happy New Year! I’m writing this while sitting on a train on my way to visit my business partners in Pennsylvania. It is my first experience using the rail for travel and I have to say it’s quite the affordable and comfortable way to go long distances! The only issue I’ve had on my journey was feeling extremely uncomfortable waiting in Penn Station for the train that would take me from NYC to Harrisburg.
I absolutely the “new year”. It’s just the perfect time to reflect on what you’ve done so far and what you’re about to do with your life. It’s an opportunity to make changes and improvements in your life. If you’re in debt, as many of us are these days, when would there be a better time to resolve to get OUT of debt? As you’re making your new year’s resolutions to lose weight, get a new job, become famous or whatever you plan to do this year – why not develop your financial goals for 2009, as well?
Here are some tips to creating a financial new year resolution:
Automatic Savings Plans The most common piece of advice people will give you regarding your finances is to pay yourself first. For years I fought against this with the excuse that I wasn’t making enough money to pay all of my bills, how in the world could I ever put any money into savings?
The trick is to save consistently, even if it’s not a lot. So if you feel like you live paycheck to paycheck and don’t make enough money, set aside $2 a week, or some other trivial amount, and I guarantee you won’t miss it. As you are able, increase the amount you save .
Debt Reduction Plan The best way to get into debt is to have no plan regarding your finances. No budget, no goals . The best way to STAY in debt is to live without a budget and expect your money will manage itself. If you have debt and are ready to get rid of it, you need to have a plan.
-do it yourself debt reduction plan
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pyramid -
debt consolidation -debt management companies
Money Management The final piece of your financial new year resolution should be an ongoing money management plan. A money management plan is basically a budget, only it sounds nicer! When you’ve worked out your debt repayment plan, start thinking about what to do with the rest of your money. If you have more income than you require to pay your bills, pay more on debt and set some aside to save or invest. Have a plan in mind for what you will do when you receive any unexpected money, to prevent blowing it or letting it get absorbed into your regular money.
Good luck with your financial goals!
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