An Outline to Achieve Your 2019 Financial Goals
Financial Resolutions vs. Goals
2019 is already here and I wonder how many people are sticking to resolutions, maybe some, maybe none, maybe there are those who don’t even believe in them. I used to be someone who made resolutions but now I have decided not to use that word. I have set GOALS for 2019 on what I want to accomplish and where I want to be at the end of the year financially. As I get older this is what I have learned. Reality about resolutions
When we talk about resolutions like losing weight, spending more time with friends and family, spending more time on a hobby or saving more money and getting out of debt we either want to do it or we are content not taking any action.
As with anything in life, either we want to make changes, or we don’t, there really is no black and white I have discovered. I was a smoker for 25 years and sure I knew it was bad for me and yes, I knew I was spending too much money on it, and sure part of me wanted to quit but at the end of the day either I was going to quit, or I wasn’t. I decided on my 40th birthday I was going to put down the cigarettes and I did.
Finances are no different, either we decide we want to be financially healthy or we keep doing the same thing year in year out and staying in a state of stress or unhappiness over our financial situation.
Instead of saying I want to save more, and I want to get out of debt, come up with a plan.
Create a Plan
The following is an outline of where to start and how to put a monthly plan in place.
1. Sit down with everyone involved in financial decisions.
I would like to point out that many people who are in relationships tend to assign one person to handle finances. If there is any hope of being financially successful you must work as a team!!! All parties must be involved for this to be successful. If one person is not on board it makes it very difficult to set financial goals and stick to a plan.
2. Write down INDIVIDUALLY what you think is going well for you all financially and where you need to improve.
For example, we have great credit scores but we don’t have anything in savings…..we have credit card debt but we also make good income….. It is important to go into this with a positive attitude.
3. Write down INDIVIDUALLY what are your weaknesses and strengths around money.
For example, I am good at savings, but I am spending more than is necessary at the Grocery Store……. I get all bills paid on time but I keep accruing credit card debt……..I don’t spend a lot on frivolous things but I am not saving as much as I should.
4. All parties write down in order of what is most important to you; home repairs, vacation, more schooling, etc…
In life there has to be a financial balance. Yes, we need to pay bills and buy things like gas and groceries, but we also need to remember to enjoy our money WITHIN OUR MEANS.
5. Write down some details that you know:
Write down ALL income that comes in
Write down ALL “FIXED” (mortgage, electric, car insurance, etc…) bills that are going out each month.
Write down ALL “VARIABLE” items that come out each month (groceries, gas, shopping, coffee, eating out, etc….)
6. Make decisions
Once you determine your fixed and variable costs (don’t forget to include annual costs like holidays, birthdays, car repairs, etc) and contribute to savings then decide where you want to put your extra dollars.
Where Mistakes happen
The most important thing in budgeting is making sure that every dollar of your income is allocated to a specific cost.
Here is an example:
Monthly Income is 2000
car insurance 100,
credit cards 200,
misc variable costs 150