Happy New Year!
It’s hard to believe 2009 is over isn’t it?
The older I get, time seems to go by even faster wouldn’t you agree?
That is why it’s crucial to get a game plan in place at the start of 2010 – because next thing you know it will be June and you’ll look at the last six months and wonder why nothing changed for you financially!
Here are three things you should be thinking about as you look to make financial progress in 2010.
1. Where Are You Now Financially?
Think of this as your starting point. With your finances it is imperative that you know where you are beginning from.
I’m constantly amazed at how many people are simply unaware of where they currently stand financially.
The best way to do this is with a little bit of work up front.
- List out all of your assets and all of your liabilities to determine your net worth.
- List out all of your income sources as well as each monthly expense item to determine your cash flow.
- Make a budget
Don’t think of making a budget as a lack of freedom because what you’ll find is that you are actually more free to spend, save and give once you have the right budget in place.
2. Where Do You Want to Be Financially?
Envisioning your goals is the fun part – Where do you want to be at the end of 2010? If you need some ideas, check out what personal finance bloggers are setting as their top goals for 2010.
List your goals, set your priorities and get to work!
3. How You Will Get There
Developing a plan is key to reaching your goals.
The plan helps determine how you will reach the objectives you have set for yourself financially.
The plan should give you step by step direction and should also include your goals, when you’d like to reach them and what action you will take to get there.
What are some things that can help you implement the plan?
1. Read Personal Finance Blogs
There are a ton of great PF blogs to choose from out there. Find a few you really like and subscribe to them!
You can also find these same PF bloggers on Twitter. Check out Debt Hawk’s list of the top 100 Personal Finance Bloggers on Twitter.
2. Find Other Resources
There are some great news and personal finance sites like CNN Money and MSN’s Money Central that have have some really great resources.
3. Accountability
This is an area that is too often overlooked.
Let’s face it – change is hard and reaching your goals takes work!
In order to correct past financial mistakes or simply change we need people rallying around us to help keep us motivated and accountable.
Find some close friends whom you can share your goals with and ask them to hold you accountable to those goals.
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{ 5 comments… read them below or add one }
I think accountability is a big one. So often we want to blame others for our difficulties, but until we accept responsibility, we can’t make progress. And even if our financial difficulties aren’t our fault, we still need to accept accountability for improving matters going forward.
.-= Miranda´s last blog ..Friday Fun Video: Time For Another Year =-.
So true Miranda. Taking responsibility and having someone hold you accountable are key to getting and staying ahead!
“The older I get, time seems to go by even faster wouldn’t you agree?”–This is something we’re all aware of as we get older, and in itself it makes a strong case for moving toward faith. We tend to over rate the length and durability of life.
I have to confess that I’ve made no resolutions for 2010. Everything seems to hinge on Point #3-How will you get there? To my thinking this describes the journey, and while you can have a journey without a destination, you can’t reach a destination without the journey.
This is my overcomplicated way of saying that I’m a plan guy, not a goals guy! Goals and resolutions, as noble as they sound, invite being broken, at least they do for me. I prefer saying, “I’ll go this way for a while”.
.-= Kevin@OutOfYourRut´s last blog ..7 Ways to Improve the Success of Your New Business =-.
Jason,
Thanks for putting together this list. I think that number three is the hardest – figuring out how to get there. Fortunately, you suggest some good resources to consider.
Kevin, interesting thoughts – I appreciate the different perspective. It is true that you can have a journey without a destination, but in general (and there are exceptions) not having any goals is a reason why some people never get ahead financially.
I understand what you are saying that the journey is more important than the stated goal because stated goals are just that – stated. That is, until they are reached through the journey. By saying , “I’ll go this way for a while” that inherently is a goal – you have something that you are journeying toward.
I think it’s ok that goals and resolutions are sometimes broken as long as there is progress. For example, if I say that my goal is to save $5,000 into my Roth this year, but I only saved $4,500 then sure I didn’t reach the goal, but there was definitely progress made.