First of all, ask yourself “where I would like to be in one year or five years. Maybe free of credit card debt is where I would like to be? Do I want to travel the world? If I had more money in my retirement account, would I be happier and less stressed? How can I change my spending habits so that I can reach my goal of $50,000 in savings?”
Once you know where you would like to be, state your goal: A year from now, I will decrease my use of credit cards. Two years from now, I will sign up for additional training. In five years, I want to have a zero-balance on all credit cards. In ten years, I’d like to transition to another career or own my own company.
Quiet the censor in your mind and just let your imagination travel where it likes. After allowing yourself this quiet time every day, you may be surprised to see where your imagination takes you! Take advantage of planning ahead, and then, every three months or so, sit down to adjust your budget. You can still get to where you want to go, you are just allowing yourself to keep it real and update, as needed.
Will I ever quit worrying?
Finances will always be a part of your life—not something you can ever move past. Confront your financial fears and set aside an hour per week to update your records. If you use computer software, download your bank statement and expenses. Balance your checkbook. Keeping up with your money each week for a small amount of time helps you stay on track for your bigger goals. Having a plan to work from results in a more efficient use of time and less worry.
Make an effort to spend responsibly. Make a list of all bills you get each month, and check them off your list as you pay them. That way, if you didn’t receive a bill, you still realize it has to be paid. Spreadsheets are a great way to keep track of expenditures. Once a year, list your assets and debts to get a sense of your net worth. As a result, you now have a true road map showing where you have been and how to move more efficiently toward your current financial destination!