| Doris Dobkins is the publisher of $mart Money New$. You can subscribe by
visiting her web site at
CreativeFinances.com |
Why
are there so many books written on "getting out of debt"
and "saving for retirement"? Why do so many people study
these subjects or subscribe to newsletters that address these
issues?
One of man's biggest fears is running
out of money at retirement. With statistics such as below, it is no
wonder:
"Household borrowing has risen
almost 60% to $6.5 trillion in the past five years." The Wall
Street Journal, July 5, 2000
"Despite an unprecedented
economic boom, more than half of Americans are worried about having
enough money for retirement." USA Today, April 27, 2000
"Families across America have
accumulated $505 billion in credit card debt, averaging a balance of
nearly $8,000 per household." USA Today, January 5, 2001
"The total number of
bankruptcies filed during the 1999 calendar year totaled $1.31
million." American Bankruptcy Institute, January 22, 2001
"One half of American households
have accumulated less than $1,000 in net financial assets."
Report by Capital Research Associates, 1999
"Almost 1 in 5 households with
income over $50,000 has no savings." Smart Money, November,
1999
"The average U.S. household has
13 credit or charge cards, and carries $7,500 in credit card
balances, up from $3,000 in 1990." The Wall Street Journal,
July 5, 2000
 The most important step to a secure
retirement and a debt free life is to create a plan. You must
identify specific goals and give yourself time frames. Without this,
you will more than likely end up in one of the statistics mentioned
above.
Not having a plan is a plan in and of
itself to be poor and financially unprepared. But before you create
your plan, define why you want a plan. Do you want a comfortable
retirement? Do you want to live on a very small income? Do you want
to be worried about your mortgage payment when you are old? Do you
want to live in fear of having a home repossessed or sold out from
under you?
WHY, WHY WHY do you want to change
your ways and get out of debt, become rich or attain financial
freedom? Answer this question for yourself. It is what will give you
the POWER to follow your plan. Then create a plan. How much debt do
you want to pay off each year? How much money do you want to save
each year? How much money do you want to have at retirement? Start
with your end goals and work backwards. Divide them into annual and
even monthly goals. Then find a way to make them happen and get
started.
If you find you are arguing with
yourself, saying "I can't do that" or "We don't have
any money" or "I'll get to that after..." stop
immediately. You are closing your mind to the possibility of
achieving your goals and it serves no purpose. If you are looking
for reasons not to achieve your goals, you will most certainly find
them.
It is up to you to create a plan and
then open your mind to the possibilities of achieving everything you
desire. You must clearly understand why you want this for yourself.
Where there is a will, there is a way. You must define your will,
create a plan and then take action.
Beat the odds. Your future can be
anything you want it to be. You determine it; you control it. Take
that first step now.
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