If I ask you what you want out of life, your first answer will probably have something to do with money — lots of it. You want to win big at the casino. You want to hit the lottery when the jackpot is at $200,000,000. You want big money! Right?
Wrong!
Think about it. If your ultimate goal in life is to be rich, what are you going to do when you achieve that goal? Remember — a goal is the final destination of a journey. When you reach your goal, you’re at the end of your journey.
Now that 2010 has come upon us, I think it’s important to make a few New Year’s Resolutions. When it comes to finances, it’s always important to set goals and to stick with them. I want to share with you my three main Financial New Year’s Resolutions for 2010 in hopes that they will encourage you to set your own goals for this New Year.
Resolution #1: Stick within our grocery budget. I often tend to overspend on groceries and I have discovered that little extras here and there tend to add up quite quickly. I vow to be more careful in 2010 and am bound and determined to stick within my grocery budget.
Resolution #2: Since my husband and I plan to do some extensive traveling in the near future, we want to save as much money as possible this year in every way possible. I also plan on working some overtime in the hopes of building up our travel fund even quicker. I find it is much easier to save when we have an exciting use for the money. It is quite boring to save otherwise. So, yes, my second resolution is to save, save, and save some more!
Resolution #3: I vow to do more homework on learning how to be more tax efficient with our money. I will do more number crunching to determine how much is worth contributing to our RRSPs and how much should be set aside elsewhere to supplement our retirement income. I also want to do further research on the home renovation tax credit to see if we can take advantage of this program before it’s too late.
For other financial resolutions ideas for 2010, check out globeinvestor.com’s article on the subject at this link.
When setting financial goals, the goals you set must be realistic. Don’t set goals that will overextend you financially or put a hardship on you or your family.
You will find that some of your goals are long-range, such as purchasing a home, and some are short-range, such as establishing good credit. Is your goal to be debt free? Do you desire to invest in your retirement? Would you like to qualify for a low interest rate credit card? You need to evaluate what you want to accomplish financially and set a plan of action. The following steps will help you achieve your financial goals:
Step 1: Write out your goal. This makes a commitment.
Step 2: Visualize your goal. Cut out a picture of what you want to accomplish. It may be a house, a car, a dream vacation or a needed appliance. Whatever it is, cut a picture out of a magazine and put the picture in a place that you can see it for reinforcement.
Step 3: Set a time frame to accomplish the goal. Remember with establishing credit, it can take several months to get approvals. Be realistic on setting dates.
Step 4: Write out your plan of action.
Step 5: Remove the excuses you have for not following through with your goal. Get rid of these phrases, “I’m too busy,” “I don’t have time,” “I’ll do it later.”
Step 6: Anticipate any situation that may arise that will cause you not to accomplish your goal. If you know of anything in your credit portfolio that could cause you a problem, find a way to correct it.
Step 7: Define your motives. Are your intentions to build a credit portfolio for the future, or for only material gain? This must be determined before you send out your first application. If the motive is only for material gain, DON’T DO IT!
Step 8: Look at all your past experiences. Learn from them.
Step 9: Believe you can accomplish what you start out to do.
Step 10: Do first things first. Do not dwell on what you need to do. Just do it! Follow through with your plan of action.
Remember, your goals will change throughout your life. As you accomplish financial goals, set new ones. Careful planning will not only help you accomplish your goals, it will also give you the boost toward building a successful credit and financial portfolio.
About the Author
Deborah McNaughton is an author and credit expert. She is founder of Financial Victory Institute, which specializes in financial education. Deborah has programs to train individuals to become credit consultants and teach financial seminars.