Tag Archives: financial resolutions

Happy New Year…But…

Leave a reply

Sadly, as of last week, over 25 percent of resolutions have already gone by the wayside. But I have an idea and a way out of that: Think of January as a free trial month. You get that with some subscriptions, perhaps with a fitness club trial and other offers. So learn the lesson and start again on February 1st with your financial goals!

Make sure that your financial to-do and to-resolve list starts with something really simple, really short, but also really critical. It’s an entire chapter in the Money Tools book called: Do you have a half hour?

Yes, you do have it – but do you want to invest that half hour into getting some of your financial stuff in order for at least the coming year?

First thing is to have a coffee date with your partner if you are in a relationship. If you’re not on the same wave length – nothing else really matters. Talk about your financial goals and hurdles for at least this year.

Do you want a $10,000 vacation? If you don’t have it set aside, what’s the plan to save $800 a month if it’s next winter, or save $1,500 a month if it’s this summer.

Want to just charge it on a credit card? That’s your choice if you and your partner agree…but at a 20% rate it’ll be $20,000 in total price in four years. I think that’s a horrible idea, but it’s your choice IF you agree and IF you know what you’re getting into.

Is there one specific debt want to pay off? Do you agree it’s worth it and which one? How important is it to you two? What will you do or give up to achieve it?

If you’re a home owner, and your mortgage is coming up for renewal, are you planning to stay in town, in the home, in your job? What’s the longer term life plan…..because you don’t want to sign another five-year mortgage if you haven’t talked it through, or your penalties will be upwards of $20,000 if you change your mind!

Open a TFSA or RRSP: If you don’t have one – it takes less than half an hour with an online brokerage or your financial institution – that’s it. If your tax refund or other money comes in you have a way to invest it. If you don’t – that money is most likely going to leak out elsewhere.

Open an emergency savings account: You want a basic one week net pay to start. Not hooked to an ATM. But you first need the 15 minute to just open it and put 10 bucks in it. That’s a start – and the longest journey always starts with that first step!

It lets you get traction…because without it you’re not going anywhere…

Four One-Off Financial Tips You Should Test Drive

Leave a reply

Last week we started talking about some financial goals for 2015. All of them are meant to be specific, measurable, and easy to get started – if you choose to. Last week’s were half hour, tops. Here are a few more suggestions that are one-offs to kind of test drive. All of these will have a significant impact on your finances for this year, and years to come.

Do a seven day no-spending week. We talked about that a few years ago, and I did it for two weeks – twice. I’ll link the story from back then, all of which are always on the yourmoneybook.com site. Essentially, gas up, fill up the fridge, and then spend no money at all for seven days. Pay your normal bills, but nothing else. I learned a ton about where my money leaks out. It’s well worth it, and not hard to do for just a week.  http://moneybookcdn.myblogspace.ca/?p=35

Try an envelope system for any 30-day period. Take the amount of money that you will need for groceries, and for money you spend on yourself for stuff like haircuts, coffee, lunch out, and the likes. Take two envelopes and put that amount of cash into the envelopes. For that one month, you’re only spending on groceries and “me” stuff out of those envelopes, in cash. You’ll learn a lot about yourself and your spending habits. And when the envelope is empty – you’re done spending – and you’ll spend way less than you have been.

Put all your credit cards away for 30 days. No, I’m not asking you to stop breathing. I’m just asking you to see if you can break your stupid spending habits and addiction to credit cards – just for a month. Take your cards, put them in a plastic Ziploc bag, add some water, and put them in the freezer. Or put them in a sealed envelope and give them to a friend or relative that you trust. You’ll be amazed that you’ll spend a lot less money in that month. Plus, your credit card balance will love you for it.

Write down a list of all your debts from the smallest balance to the largest amount, in order. Pay minimum payments on everything but the smallest bill and attack that one with every dollar you can spare. Because it’s the smallest debt, it’ll take only a few months to pay that off in full. Then you’ve freed up all that money to attack the next smallest. It’s a debt snowball that gets traction really quickly. It really is that simple, and it’s a chapter in the It’s Your Money book.

More of Getting Financially Fit for 2013

Leave a reply

Last week I promised that we’d talk about some specific small steps you can take to change your finances around. Why small steps? If it’s too big, your sub-conscious mind will revolt against huge goals which seem impossible to reach.

You’re not going to lose 60 lbs, but you can lose a pound a week. You won’t run the marathon this summer, but you can go for a 15 minute walk each day. You also won’t be debt free by March, but you can start on that journey with one step at a time.

Resolve to say no: Whether it’s to yourself when it comes to spending, to your kids, people at work, or anywhere else. It’s the one word that’ll change your financial life and overspending.

Set yourself a credit limit for the next month. Pick a dollar figure below which you’ll pay by debit card or cash. Maybe $20 or $30 bucks – that’s it. Anything below that, you’ll pay with real money, instead of running up debts. It’ll become a great habit and will cut down your credit card balance in huge ways.

Take your credit cards out of your wallet for two weeks. You don’t need them just to go to work and home. That way the temptation and impulse spending is gone. Take a $20 bill and hide it in your wallet or purse for an emergency. If it’s really for an emergency you’ll still have it in there in six months. With credit cards we spend 12 to 18% more than paying by debit card or cash. When you don’t have them on you, you can’t overspend.

Keep your car for another year. If you believe a cool car is a status symbol and a must-have, you’re doomed to be in debt for decades to come. Not to mention that almost 50% of people trade their vehicle and STILL owe more than it’s worth. The goal should be to drive a reliable vehicle that doesn’t have payments with it, which are killing your chances to save, or to get ahead financially.

Annual bills kill your budget, but they’re not a surprise. You know they’re coming – but you don’t have the money to pay them. Open a savings account and add up what you’ll need for next years’ Christmas bills, your property tax and car or home insurance. Divide it by 12, and put that amount away monthly. A small amount each month is doable, a huge bill sets you back months.

Pay off one bill. Minimum payments buy you another month – nothing more, and it’s treading water. Credit cards and debts are not your friend. They’re financial dream killers, suck money out of your pocket, and add a ton of stress to your life and your relationship. Take your smallest bill and put every dollar you can towards it while paying minimum payments on everything else. When it’s gone, you know it’s not coming back. If you want – and you should – take the next smallest and focus only on it. This step-up plan will get you debt free in less than half the time. It’s an entire section of the It’s Your Money book and will change your financial life forever.

Test drive these six suggestions for the next two weeks or the rest of the month. It’s not overwhelming and it’ll be easier than you think. Then you can choose to carry on with some or all of them for another month. By that time, it’ll be habit and part of your life. If nothing else, at least resolve to make this the year where you spend more time planning your finances than your vacation.