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This post is part of a 13 money resolutions for 2013 series.The next posts are
Step 2 trim the fat
Step 3 do it yourself
Step 4 stop wasting
Step 5 review your expenses
Step 6 crush your debt
Step 7 make more money
Step 8 be happy
Step 9 max it out!
Step 10 stop buying
Step 11 give back
Step 12 make a plan
Step 13 enjoy!
Happy New Year!! I hope that 2013 will be filled of happiness, joy, health, friendships and of course, smart money decisions. Which is why I am starting a mini boot camp to start your finances on the right foot this new year. AND co-hosting a $100 cash giveaway to help you kick start your money resolutions!
As my title says, you need to start somewhere. I am guilty of procrastination myself and facing a mountain of debt, expenses, or money obligations is daunting. Like this big pile of dirty dishes was before it became this:
I spent probably half morning looking at it and finding much better activities than tackling it. We had roasted lamb and the cold lamb fat is kind of gross. I could find 10 excuses not to do it. But bottom line, if I want to eat again, I need a clean plate. And under the tropics, after seeing a couple of disgusting cockroaches in my kitchen, I know better than living dirty dishes for long.
So I just started somewhere. I grabbed a glass, and whatever needed less attention than the big greasy Pyrex. By the time I reached the Pyrex, I had gained momentum, and it was the only item left, so cleaning it was not such a big deal after all.
Time to tackle your finances. Yes, you have 20 items on your money to do list. I don’t care about the other 19, stop making excuses, and chose one. That is it, just one. The smallest balance credit card, your favorite savings goal, your choice. What kind of efforts are you making to reach your goal? How bad do you want it?
We all know how to lose weight, we need to eat less and exercise more. Yet if you start starving yourself and running a daily marathon from the start, chances are you will be giving up after two days. The same goes for your money goals, find a small, approachable one and work your way up.
People are full of excuses, there is no time to make meals at home, to cycle to work, they NEED a new computer and REALLY can’t find enough money at the end of the month. Look again. Stop making excuses because the joke will be on you.
Start somewhere, somewhere small, you may not climb the mountain today but scratching a little bit of it will make the slope less steep. You want to start saving 75% of your income to reach financial independence? Start with 10% and increase the amount by 5% each month until you can’t cut on your spending anymore. You want to get rid of $20K of debt? Start by making $50 extra payments every month and increase those contributions by $20 every following month, until your budget is tight.
Why is NOW the best time to start? Actually the best time to start was yesterday, or a few years back, but you can’t change the past, and every other day you spend in debt is costing you money. Plus you probably got a raise in the new year, even though it is just an inflation adjustment, so put it towards your first money goal.
Until this goal is achieved, all your money focus should be on it. On top of making your regular debt payments and retirement contributions of course.
I prefer goals to resolutions, because there is effort implied, whereas I feel that many people just throw resolutions in the air and forget about them on January 2nd.
One of my money goals for 2013 is to get rid of $25K of debt. $5K minimum payments and $20K extra. That is a stretch because I also want to build a house and develop 90 acres of land in Guatemala. I will try my best and put every little extra towards my goal. In order to make it easier, I am cutting it into smaller goals. My extra $20K reduction includes a 7% loan and a 0% balance card that comes to an end in June. For now, I will focus on saving 1/6th of the card balance on a savings account until June.
Now on to the giveaway! This time again, you can win $100 cash through Paypal or Amazon gift card, your choice! All you have to do is like my FB page for an easy entry. Check out the other participants to win more entries. Good luck!
How did your NY go? Had a good time? Ready to dream big in 2013?
So true Pauline, NOW is the best time to start as yesterday has already happened. It’s true for everything, not just finance.
I wish I could apply all my financial wisdom to other areas of my life. One at a time, this week, I am cleaning my Inbox and it is already some job!
Today is the first day of the rest of your life! Have been discussing this one with son number two. I am not very good on goals – not for us completely obsessive poeple. I have been learning to work with emotions – dream and trace back – and find it very productive. Sometimes I procrastinate and love it – but…one has to ensure that they mover forward.
It is awesome that you have both a scientist’s mind and the ability to assess dreams and emotions. I rarely remember my dreams, that sounds like an interesting approach.
I hear something yesterday on the radio about the new years eve, i like it and i want to share. Every new years eve is an opportunity for every person to put the counter back to zero and start again once more. And when someone start from zero one of the most important feelings is hope for the good things will happen during this new year. At the end of the day this day (yew years eve) is a celebration for hope. I wish the best for all of you.
Thank you Vaptisi, a very happy new year to you as well! You are right that this is the opportunity to start fresh and with positivism and motivation you can achieve great things.
Our family will be using the cash envelope system more!
Great plan Joshua, I hope it helps you budget and save more!
I prefer goals as well. I had a few broad “resolutions/goals” that I plan on tweaking. I already think in 2013 I will ditch my Saturday post, despite having one of my resolutions be “post 6x/week.” I might start a Saturday post again, once I have a backlog of posts.
The last thing you want is to burn out, 6 posts a week is a lot!
So true! Starting anything new or challenging is always the hardest and scariest step. Best of luck to you in 2013!
To you as well Kyle, Happy New Year!
I am restarting a journal this year to include my spending habits, exercise and a few other things all in one easy access comp book!
Happy New year!
cool, good luck with your goals for 2013!
Happy New Year! Love the comparison to washing dishes… Momentum is a powerful thing 🙂 !!
yeaaaah! Happy New Year SS!
Last year on this day we created a very detailed budget and have been following it for the past 12 months. It has made huge difference. Having control of our finances has been alot more rewarding.
Good Luck with your mini boot camp.
Thank you Sicorra, I am sure you will excel in 2013.
That’s so true that people go so big they end up feeling disappointed or burned out and quit! It’s like Nike says-Just Do It!
Let’s do it then!
Just getting started is such a critical step. I think many people make tons of detailed plans, and truly have the best of intentions. But inertia takes over, and excuses come into play that prevent someone from getting started. Just making that first move, can help momentum get rolling as we actually see success. There is something about actually seeing success that gets us more confident and excited to put more effort in.
Here is to success and momentum, happy new year!
I am such a procrastinator. The hardest part of finishing something is always starting it. Once you start, then it is easy to build momentum. Right now, I’ve got a giant pile of laundry to take care of from when I was sick.
One load at a time! I hand wash here for the moment (don’t feel like hiring a maid or buying a washing machine) and I quite like it as I free my mind from everything and start thinking about stuff while I wash.
I also prefer goals to resolutions! I usually obtain them that way 🙂
I feel like a champ when crossing mini goals off a list, just like a 5 year old, but it works!
Very true! No better time than now. This year, I’m focused on knocking down my student loan. I jumped from 9 years of repayment to 5 years just by increasing my monthly payment, so I’m hoping to throw lots of extra cash towards it to knock it down even further.
It is so cool to see the term drop with every extra payment, good luck!
Like you, I want to start by taking it small steps at a time. Slow, but sure step will surely get me to my destination. I have already 3 piggy banks with different labels- to accept all those savings daily for specific activities. It’s just one of my little methods to save more money this year.
Nice idea. I am sure if you empty your pockets every time you come home you will end up with a good chunk of change real quick!