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Abstract:
By taking small conscious steps to get out of debt you develop a momentum that builds over time. Getting started is the hard part. This article gives you a roadmap to outline your goals in every area of your life.
In the beginning of each year, many of us set out to reach goals that are sometimes unrealistic. Regardless of how well-intentioned your goals may be, incremental change is not always easy to accomplish.
Although a goal is something people look forward to, the fear of leaving their comfort zone of the way things are is often too much to handle. The change is too big. It is normal to feel a loss (I can't go out to lunch with my friends today because I promised to save money by bringing my lunch once a week) while striving for the new goal of becoming debt free.
Accepting and dealing with the loss of what you will leave behind is a big part of reaching the new goal. For example, if your goal is to lose weight, set the goal, and know the great feeling you'll have when you reach it, but also know that there will be the loss of familiar and comfort along the way will be a big temptation to go off course. Don't just think about how you will feel when the goal is reached; know that change is required throughout the process. For example, you can’t just stop eating French fries, chocolate and ice cream for one day and expect a major shift. This let-down can sometimes take you by surprise and drive you back to your old habits.
If you break up the goals into small steps you will have a better chance of reaching them. Take time this new year to identify your top four goals:
1. Health
2. Family
3. Financial
4. Career
Now that you've identified the key annual goals, break them down into monthly goals:
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Health |
Family |
Financial |
Career |
January |
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February |
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March |
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April |
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May |
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Etc. |
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For example, if your financial goal is to eliminate $5000 of debt this year, your chart might look something like the following:
Month |
Financial |
January |
Make a plan to get out of debt and budget my money |
February |
Send in an extra $10 per week towards my primary target credit card while sending minimum payments monthly to my other loans. This will not only help you save on late fees, it will have a positive accumulative affect on the interest that is accuring on your balance. |
March |
Evaluate my fixed expenses and determine how I can save $50 this month - perhaps decrease the cable bill. |
April |
Take my lunch to work 4 times per week this month |
May |
Group my errands together this month to save time and gasoline expenses. Consider trading down to a used, more affordable, fuel-efficient vehicle. |
June |
Call my auto insurance agent and determine if I'm over insured. |
July |
Begin shopping clearance racks for holiday presents and put a limit on how much to spend! |
August |
Pay off my first target. Determine the secondary loan target and roll those payments into this 2nd target. Begin sending in payments weekly. |
September |
Create two unique inexpensive activities to do as a family instead of eating out each month. |
October |
Use my cell phone to make long distance calls on the weekend when I have free minutes instead of during the week. |
November |
I vow to use all of the household personal care and cleaning supplies before buying any more. |
December |
Determine whether the billing cycles of my expenses are appropriate for my cash flow. |
Getting out of debt is hard work. It may take time before you begin to see any worthwhile impact. You will achieve your goal if you persevere, but the key is to never buy retail and never give up. Be frugal in your choices and eventually you will be free from the debt with which you are faced.
The devil is in the details and staying disciplined when trying to get out and stay out of debt. Change your spending habits and you will begin to see your cash flow situation improve. Post your goal sheet on a mirror, on a refrigerator, or somewhere else in your house where you will see it everyday. Keep your goals top-of-mind!
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