Monday, January 9, 2012
Happy Money Monday!
Post Holiday Financial Assessment...by Austin the Realtor
Welcome back and I hope your New Year has started off prosperous and fulfilling. As we continue on the journey of financial awareness and success, it's time to make an assessment of where we are and where to go from here. Holiday spending is long gone, and now it's time to get on track and utilize some of the tools we discussed in previous Money Monday discussions.
1 – Lay it all out on the table: Literally get all your bills and lay them on the table to see what you are dealing with. As discussed, prioritize by interest rate and setup up your payment amounts and schedule.
2 – Grab your list of “Trimming the Fat” items and keep it close so we can keep up with it as much as possible. Post on your fridge if needed so that it can be reviewed every morning. Go for the gusto and see how far you can go and make small adjustments as needed.
3 – Track your spending and the differences so you can see if you are actually making a difference or see if an adjustment needs to be made in your daily spending to maximize the value of your money.
4- Lastly, let’s try a change in mindset. Ask yourself, “If I can’t pay it off by months end, can I go without buying it?” It’s easy to charge an item and say, "I’ll pay it off later." Think about this statement: “I’ll eat this entire cake and work it off later.” How often do you immediately work off calories consumed, pound for pound? Debt works the same way! It’s much easier to maintain it as you go along as opposed to spend, spend, spend and then say, "let’s fix this."
I’ve found the more you repeat something, the more you grasp it and it becomes second-nature, so this is a recap of what we already discussed as a refresher. In the coming weeks, we are going to discuss various saving and investment objectives so we can put all that money saved to work.
Topics to be discussed:
529 Plans (saving for college)
Real Estate – the process of buying and tips
Let’s make this your best financial year yet!
-Austin the Realtor