Happy New Year! I hope 2013 brings you joy, health, friendship, and smart money decisions. To help you start the year on the right financial foot, I’m launching a mini boot camp and co-hosting a $100 cash giveaway to kick off your money resolutions!
As we begin, remember you have to start somewhere. Procrastination is something we all deal with, especially when facing a mountain of debt or expenses. It’s daunting, much like staring at a stack of dirty dishes. I once spent half a morning avoiding a pile of greasy dishes, but eventually realized I needed a clean plate to eat again. I started with the easiest item, built up momentum, and soon the daunting task wasn’t so big after all.
Think of your finances the same way. You may have 20 items on your money to-do list, but just pick one. Don’t worry about the other 19 right now. Choose the smallest balance credit card or your favorite savings goal. Reflect on the efforts you’re willing to make to reach your goal and how much you want it. Just like with weight loss, where you need to eat less and exercise more, your money goals require starting with small, manageable steps.
Often, people make excuses like having no time to cook at home or needing a new computer. We need to stop making excuses and start small. You might want to save 75% of your income to reach financial independence. Start by saving 10% and gradually increase it by 5% each month. If you aim to erase $20K of debt, begin with $50 extra payments monthly and add $20 more each month.
Why is now the best time to start? Ideally, you should have started yesterday or even years ago, but you can’t change the past. Every day in debt costs you money. At the start of the new year, you might have received a raise, even if it’s just an inflation adjustment—put this towards your first financial goal.
Focus all your efforts on your current goal until you achieve it, while still making regular debt payments and retirement contributions. Goals are more effective than resolutions because they imply effort, whereas resolutions are often forgotten quickly.
One of my financial goals for 2013 is to eliminate $25K in debt. This includes $5K in minimum payments and $20K extra. This is ambitious because I also want to build a house and develop 90 acres of land in Guatemala. To make it more manageable, I’m breaking it into smaller goals. I’ll focus on saving one-sixth of the card balance by June.
Now, onto the giveaway! You can win $100 cash via PayPal or an Amazon gift card—your choice! Simply like my Facebook page for an easy entry. Check out the other participants for more chances to win. Good luck!
How was your New Year’s celebration? Ready to dream big in 2013?