Involve Your Family in Financial Plans
December 28, 2011
You’ve thought about your financial goals for the upcoming year. You’ve made a good plan, you have your goals written down and your budget ready. So now it’s time to put your plan into action. You start to do this when all of the sudden you hear, “Mom, I need new shoes for basketball.” Or, “Honey, we need to change the oil in the car.” You can already feel control over your well planned budget starting to slip away. Let’s regain some of that control with these tips on involving your family in your budget.
Sharing Your Goals
A main key to reaching your families’ financial goals is letting everyone know what those goals are in the first place. If no one in your family is aware that you’re working towards financial goals, they’re not going to be able to help you to reach those goals. Remember that you’re going to have a much easier time reaching your goals if you work as a team rather than just by yourself. Also, if you or another member of your family is having a tough day, you can be there to pick them up a bit. Sharing goals also leads to more accountability when it comes to your goals. When you share a goal with a family member you’re then going to be accountable not just to yourself but to that family member also. It creates a network of support and encouragement which is only going to help you to reach your goals.
Keep Track of Progress
It’s a good idea to chart your progress towards your goals as it can be very reassuring to know that you’re on the right track. Keeping a daily journal can also help your progress, especially if you’re just getting started. You can use it to reassure yourself that you’re making progress during those times when it seems like you aren’t getting anywhere. Also make sure that you’re communicating or sharing success. A dry erase board on the fridge can be the perfect forum to share financial successes that you had that day with the rest of the family.
Being clear, open, and honest with your family about your financial plans will definitely help you to reach more of your financial goals in the future.
A Successful Savings Plan for 2012
December 21, 2011
You’ve already started to think about your financial goals for the New Year. You’ve decided that you want to put more money into savings in 2012. With 70% of Americans living paycheck to paycheck right now, where do you start? Proper planning is the number one factor in reaching financial goals, so let’s start by creating a proper plan for your savings goals.
How to Get Started
Saving money when times are tough can be a difficult task. If you think about saving money in “big” terms, you’ll never save a dime. Why? See if this thought sounds familiar: “Well, I don’t make 100k per year; I can barely afford my bills now. So I can’t save any money, forget it.” You just defeated yourself before you put one penny in the bank. Remember that Rome wasn’t built in a day, you have to start somewhere. The key with saving is starting where it’s easy, where it’s comfortable for you. Let’s say you start off saying, “I’m going to save 500 dollars a month.” Then a month goes by, you don’t get to 500 dollars, and you just defeated yourself again. Start with a small amount, something that’s easy so you don’t defeat yourself right off the bat. After a few weeks go by and you have some success, then you can start to push yourself a little bit.
Set Specific Amounts
If you want to save more, you might be thinking, “I’d like to save more money this year.” A general thought like this in your head as a goal is doomed to fail. Try to be more specific like saying, “I’m going to save 5 extra dollars per week this year.” By doing this it leaves a specific action to follow, and it is also a realistic amount so you won’t fail before you start. Remember 5 dollars a week adds up to 260 dollars in a year. Mind those pennies; the dollars will take care of themselves.
If you’re trying to save a little more this year, believe in yourself, have a good plan, and you will certainly be successful.
Make A Financial Resolution for the New Year
December 19, 2011
With the New Year approaching, lists of resolutions are starting to get longer, but have you started yours yet? What is it going to entail? For many, the New Year is a way to start fresh, and one of the more popular resolutions has been, and will remain, to fix your personal financial outlook. Whether you are looking to get out debt, or just looking to save a few extra bucks this year, you need to do more than just say you’re going to change. An effective method is to create a strategy to do this.
The reason many resolutions fail is because people often do not hold strong to completing the task. There is often nothing to look back on to stay the course because most resolutions are verbal commitments to yourself. By writing it out, and creating a game-plan, you can then follow steps that will lead you to success. This is most true when trying to resolve your financial life. Here are a few points to help out:
- Have a notebook handy, or a document of some sorts which can act like a financial diary, and write your goals down.
- Determine where your debt is, and how much you have.
- Create a budget.
- Eliminate all unnecessary costs. (This one can be difficult, but you have to be stern with your spending.)
- Keep track of all your spending habits. (Could be a dollar on your credit/debit card for a pack a gum, or a a couple hundred for a plane ticket. Whatever it is, make sure you track it by writing it down, and of course pay it off as soon as possible.)
- Negotiate your debt.
- Analyze your spending habits, and revert back to your initial goals and game-plan to stay on track.
You won’t be alone this year if you are looking to get your financial life back on track, but don’t be one of the many that doesn’t stick to it. Set your mind towards your goals, and if the tips above can help you achieve them, use them. If you would like more help in the matter, let us know. We would love to talk with you.
Here is to the New Year, a clean slate, and to you regaining your financial future.
Happy Holidays!
Financial New Years’ Resolutions
December 19, 2011
What happened to 2011? 2012 is almost here and it’s amazing how time flies. Think back to this time last year, what was going through your mind then? Did you make some financially related new years’ resolutions last year only to see them not be reached? How do you make sure that you reach your goals this year? Remember that most people don’t keep most of their new years’ resolutions every year, so you’re not alone. Financial resolutions can be the toughest ones to keep, so here’s some advice on how to get them done this year.
Simplify Larger Goals
The main key to reaching financial goals is to set them so that it is realistic to think they can be reached. A lot of times thinking about financial issues and goals can be overwhelming. You have the best of intentions but you don’t know where to begin. For example, you might say, “I want to get out of debt this year.” Break that statement down. Ask yourself; is it realistic to be able to totally pay off my debts this year given my current budget? If the answer is no, you might want to set a more realistic goal. Maybe you could say, “I want to reduce my unsecured debts by 25%.” Now that goal becomes much more attainable. And, if you’re able to surpass your goal, you’re going to get a boost by achieving what you thought was realistic.
Specific Is Terrific
If you have a goal in mind, and you don’t have specific actions planned out to meet that goal, you’re already setting yourself up for failure. Try to think of specific actions that you’re going to use to reach your goals. For example, your goal might be to pay off some debt this year, but how are you going to go about doing that? Try to be more specific like saying, “I’m not going to pay any late or overdraft fees this year.” Then you can get a calendar for the fridge to mark your due dates. Be specific not only about the goals themselves, but also in the actions needed to attain those goals. It will help you to be more successful.
Simple and specific goals are much easier to follow and attain than goals that are not. So begin where it’s easy and then start pushing yourself in 2012.
Getting Ready for Winter
December 14, 2011
Did you have a moment of shock after you opened your natural gas bill last month? For those of us who live in cold weather states, the utility bills shoot up pretty quickly when old man winter comes around. With the economy struggling and utility rates rising every year, it’s getting tougher and tougher to make ends meet. But how many sweaters can you put on and still be comfortable? It’s time to consider some winter weatherization measures to keep you warm in the winter without breaking your budget.
Start With Windows
A majority of heat that you will lose this winter will sneak out through your windows. The windows are where most air leakage occurs, forcing warm air out and cold air in. You can use putty or foam to seal any cracks and/or seams around your windows. Old windows will warp with age, especially if they are made of wood. Check the edges to see if there is any warping, and fill in the gaps. The key with filling cracks in is to start low and work your way up your home. Warm air rises, and as warm air rises through your home cold air will seep in from down low first. Use something that smokes (like incense) and place it near low areas in your home. Low location windows, where the sill meets the foundation, and basement storm doors or windows are good places to start. Once you get up higher in your home look for leaks along attic hatches and any areas where utility lines may come out of your home. Filling in these leaky spots will help to keep heat in your home.
Down Below
While you’re down in the basement, there is one simple thing you can do to winterize. Insulate your hot water tank. Remember, either your gas or electric is working 24/7 to keep that giant tank of water hot. By just putting a blanket on your water heater you can reduce the amount of energy it takes to keep it warm. Just turning it down a few degrees can really make a difference also.
So before those high winter utility bills come around do a little bit to help you budget by winterizing first.
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