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 “I want to slim down my spending, but … I am not interested in a lifestyle diet!”
Set Your Goals Before you can start on anything you have to have a realistic goal in mind. Since decreasing your monthly spending and increasing savings are the ultimate goals, start by setting a spending goal. How do you do that? You must start by looking at your expenses for a few months. Choose three ‘normal’ months and gather your receipts for cash transactions, bank and credit card statements. Do the Financial Cardio Fitness test. After the shock has worn off, realistically look at your spending habits. What really could be eliminated without hurting your lifestyle significantly? Remember, making too many drastic changes at once, especially in the beginning, is a sure fire way of setting yourself up for failure. It’s not about giving up your favourite treats; it is about figuring how to work them in. Now build your budget based on your average spending. Click the following link for Tips on Budgeting . Lose the Rate One way to immediately see a difference is to eliminate high interest debt, like credit cards. No, we do
not think you have a big bag of cash lying around. What we are suggesting is that you consolidate all
your personal debt into one loan. Not only will you likely decrease your overall interest rate you will
absolutely decrease your minimum monthly payment. As a bonus you will have a real debt free end
date. Once you pay off your credit cards, only use them if you can pay the balance in full when the bill Cinch the Spending Keep track of your spending. Research indicates people who journal their caloric intake and exercise outputs lose up to 50% more weight than those who do not – so too with spending. Once you start tracking it’s easy to see where you can cut the fat. Make it a habit at the end of the day to take 15 minutes and write down everything you spent. Keep it simple only use just a few expense categories. Stop Busting the Budget At first it is not about decreasing spending, it is about controlling it. At the end of the month compare your expenses to your budget. Where did you go over, were there extenuating circumstances? Be honest – a shoe sale is not an extenuating circumstance. Measure Your Progress After a few months – re-take the Financial Cardio Fitness test. Has your fitness improved? If not, what held you back? But do not worry; changing spending habits is not easy. If it was, everyone would do it. Increase your Savings Weight It has been a few months; you have a system
in place, now it is time to increase your savings
weight. Take the Financial Strength Fitness test.
How much are you short? You cannot realistically
make up the difference right away, but shaving Still not convinced you can keep your New Years’
resolution? We want to C.U. so you can get
started on making your financial resolution a
reality, come in, drop us a line or give us a call.
By the end of the year, 2010 will make one of
your own ‘Best of…’ lists.
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The noise makers are put away, the endless ‘Best of …’ lists are done for the
season (thankfully) and your first resolution may have already gone by the wayside.
If one of your resolutions was to get your financial house in order, there are
ways to make the process, not quite pain-free, but at least a bit easier to live
with, than say, going to the gym everyday and eating only healthy foods. Pass the
chocolate please.
