| Doris Dobkins is the publisher of $mart Money New$. You can subscribe by
visiting her web site at
CreativeFinances.com |
you want this to be the year where you finally straighten out your
finances, read on. If your finances have been sinking you deeper and
deeper into debt each month, here are some ideas to help you get
your financial act together.
Rule One: Every Dollar Counts!
How much of your hard earned income
falls through the cracks each month? How many dollars are frittered
away on a candy bar here and an espresso there? If you are like most
people, you have no idea how much money each month falls through the
cracks.
The best way to solve this problem is
to start documenting every expenditure you make. Whether it's a
cash, check or credit card purchase, you need to jot down what you
spend your money on, each and every day. This includes those $1.00
candy bars.
One way to track your spending is to
take several index cards and label them with different budget
categories. Every time you spend something, jot down the purchase on
the appropriate index card. At the end of the month, add up the
purchases on each card and see exactly where your money has gone.
From this, you'll be able to see how much money you've spent on
nonessentials.
The money falling through the cracks
each month can then be redirected towards savings or paying off
debt.
 You can also track your spending
instantly with palm software or on your computer with automatic
downloads of all banking and credit card transactions. The software
that I use has totally changed my life and how I look at my
spending.
Rule Two: Rewards Are OK!
Allow yourself to splurge every once
in awhile within reason if it helps you make your budget more fun
and realistic. You probably won't stick to your plan very long if
you are too hard on yourself.
Rule Three: Change Your Focus
Every Month
Each month, focus on a different area
of your budget to shave off a few dollars. If your monthly budget
for entertainment is $100, try to reduce your budget by 10 or 20%
this month and then remain at that spending amount each month until
all your debts are paid off.
Freeing up cash in each area of your
budget is one of the easiest ways to find extra money to pay off
debts or put towards savings. If you need some great savings ideas
for your budget, this is where my home study course Financial
Freedom From A-Z, (Get Out of Debt Now) can help you because it
shows the steps I took to get out of debt and they worked for me and
I want to help you do the same.
And finally,
Rule Four: Pay Yourself Before The Bills
If you want to develop the spending
patterns of the rich, you will always allocate some money each month
towards saving and investing, no matter your level of income. This
must be done before you pay your personal bills and is one of the
most important habits you can develop.
To guarantee that you never miss a
month, bypass your checking account and have the money directly
deposited into a mutual fund, money market or savings account each
and every month.
Practicing these four steps can do
wonders for your finances and in helping you eliminate debt. Start
now with step one and get out some index cards or try that budgeting
software.
Track your spending to include every
dollar of income that you receive and you will be well on your way
to eliminating bad debt and achieving financial freedom for
yourself.
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