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7 Things I’m Doing Right Now To Improve My Financial Situation

7 Things I’m Doing Right Now To Improve My Financial Situation

    Just like most folks, I don’t consider my financial situation perfect. I have some debt that I need to pay off and some goals I want to achieve. Moving forward on financial matters can seem so difficult. Saying that ‘I want to get out of debt’ is general — there’s no clear starting point. And that’s just the minor stuff: figuring out taxes can make you wish we all still relied on barter. But setting your financial house in order isn’t impossible. You just need a starting point.

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    These steps are my starting points. Not just any starting points, either: these are my ‘back to basics,’ ‘work on when I have no idea what else to do,’ ‘got to keep with it’ tasks.

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    1. I set goals. My financial goals are very set things, though. They have dollar amounts and due dates, no matter what. After all, my finances are all about numbers. It just makes sense that my financial goals are the same way. I consider something along the lines of ‘I will save $500 by the end of this month for my emergency fund.’ I also think it’s crucial to know from the start what your money is for. Saving for shoes or for getting laid off is easy, but just saving is hard.
    2. I read. I know I don’t know everything there is to know about personal finance. I’m working on correcting that, though. Right now, I’m reading up on stocks — a subject that was not even mentioned during the one semester of financial literacy education my high school provided. Because I’m well aware of the deficiencies of my official personal finance education, I read a lot. I want to know all about different ideas, even if I don’t agree with them.
    3. I take my time. When it comes to a financial decision, including spending relatively large sums of money, I wait. While I might have an instinctive reaction (often along the lines of ‘Buy it! Buy it!’), I’ve found that I save a lot of money by just deciding to come back later. The same holds true on other financial decisions. Before I chose a bank, I take some time and do some research.
    4. I put my money out of reach. I’m lucky — I don’t have a problem resisting the urge to use my credit card. But if I have cash in my pocket, I always have a burning desire to spread the wealth around. I try to head this urge off: I don’t carry much cash. I’ve gone a step beyond that, though. Most of my savings is in an account that, while I can get my money in an emergency, I do have to jump through some hoops to make a withdrawal. Having to go through a few extra steps when I want cash makes me reluctant to spend money when I don’t actually need to.
    5. I improve my income. Passive income is the best thing since sliced bread. Whenever I get the opportunity to set up a passive income stream — even if it’s just a static website with Google AdSense — I do what I can to take full advantage of it. I do what I can to improve my other sources of income, as well. I negotiate for higher pay, take on side projects and generally do whatever I can to increase the amount of money I have coming in.
    6. I run a business. It seems like having a business would be more effort and expense than it would be worth, financially speaking. But you can effectively run a business for free, and it offers several advantages. Consider your ‘business expenses.’ If you run a blog or other computer-based business, that computer you just bought could be tax deductible. You just lowered your tax bill by making a purchase that you probably would anyway.
    7. I do things myself. Some instances of frugality, like making your own soap, may not improve your financial situation. It may not be worth your time to do some things yourself. But I’ve found several things to do myself that have saved me money, liking baking my own bread. Even better, if I’m doing some task I’d normally pay someone else to do, in addition to saving that fee I’m not out spending money on entertainment. Sure, it may not be cheaper for me to grow my own tomatoes, but when I’m gardening, I’m spending only a fraction of what I would at the movie theater.

    There are lots of little things that we can do to tidy up our respective financial situations. It’s important to remember that it’s not an all or nothing proposition you can make progress on your financial goals without committing to complete frugality, massive saving and working every hour in the day. That sort of approach will probably only last you a few days before you break down. But if you work on just a small task or two at a time, you can make a lasting change in your approach to personal finance. Even doing something as simple as eating one extra meal at home each week can make a profound difference in your bank balance.

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    None of the steps I’ve listed before need to be hardcore processes. Even running a business can be something as simple as selling your old stuff on eBay. Each of these steps can be as small — or as big — of a commitment as you would like. Personally, though, I go for the light workload.

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    Last Updated on January 2, 2019

    7 Steps For Making a New Year’s Resolution and Keeping It

    7 Steps For Making a New Year’s Resolution and Keeping It

    Are you keen to reinvent yourself this year? Or at least use the new year as a long overdue excuse to get rid of bad habits or pick up new ones?

    Yes, it’s that time of year again. The time of year when we feel as if we have to turn over a new leaf. The time when we misguidedly imagine that the arrival of a new year will magically provide the catalyst, motivation and persistence we need to reinvent ourselves.

    Traditionally, New Year’s Day is styled as the ideal time to kick start a new phase in your life and the time when you must make your all important new year’s resolution. Unfortunately, the beginning of the year is also one of the worst times to make a major change in your habits because it’s often a relatively stressful time, right in the middle of the party and vacation season.

    Don’t set yourself up for failure this year by vowing to make huge changes that will be hard to keep. Instead follow these seven steps for successfully making a new year’s resolution you can stick to for good.

    1. Just pick one thing

    If you want to change your life or your lifestyle don’t try to change the whole thing at once. It won’t work. Instead pick one area of your life to change to begin with.

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    Make it something concrete so you know exactly what change you’re planning to make. If you’re successful with the first change you can go ahead and make another change after a month or so. By making small changes one after the other, you still have the chance to be a whole new you at the end of the year and it’s a much more realistic way of doing it.

    Don’t pick a New Year’s resolution that’s bound to fail either, like running a marathon if you’re 40lbs overweight and get out of breath walking upstairs. If that’s the case resolve to walk every day. When you’ve got that habit down pat you can graduate to running in short bursts, constant running by March or April and a marathon at the end of the year. What’s the one habit you most want to change?

    2. Plan ahead

    To ensure success you need to research the change you’re making and plan ahead so you have the resources available when you need them. Here are a few things you should do to prepare and get all the systems in place ready to make your change.

    Read up on it – Go to the library and get books on the subject. Whether it’s quitting smoking, taking up running or yoga or becoming vegan there are books to help you prepare for it. Or use the Internet. If you do enough research you should even be looking forward to making the change.

    Plan for success – Get everything ready so things will run smoothly. If you’re taking up running make sure you have the trainers, clothes, hat, glasses, ipod loaded with energetic sounds at the ready. Then there can be no excuses.

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    3. Anticipate problems

    There will be problems so make a list of what they’ll be. If you think about it, you’ll be able to anticipate problems at certain times of the day, with specific people or in special situations. Once you’ve identified the times that will probably be hard work out ways to cope with them when they inevitably crop up.

    4. Pick a start date

    You don’t have to make these changes on New Year’s Day. That’s the conventional wisdom, but if you truly want to make changes then pick a day when you know you’ll be well-rested, enthusiastic and surrounded by positive people. I’ll be waiting until my kids go back to school in February.

    Sometimes picking a date doesn’t work. It’s better to wait until your whole mind and body are fully ready to take on the challenge. You’ll know when it is when the time comes.

    5. Go for it

    On the big day go for it 100%. Make a commitment and write it down on a card. You just need one short phrase you can carry in your wallet. Or keep it in your car, by your bed and on your bathroom mirror too for an extra dose of positive reinforcement.

    Your commitment card will say something like:

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    • I enjoy a clean, smoke-free life.
    • I stay calm and in control even under times of stress.
    • I’m committed to learning how to run my own business.
    • I meditate daily.

    6. Accept failure

    If you do fail and sneak a cigarette, miss a walk or shout at the kids one morning don’t hate yourself for it. Make a note of the triggers that caused this set back and vow to learn a lesson from them.

    If you know that alcohol makes you crave cigarettes and oversleep the next day cut back on it. If you know the morning rush before school makes you shout then get up earlier or prepare things the night before to make it easier on you.

    Perseverance is the key to success. Try again, keep trying and you will succeed.

    7. Plan rewards

    Small rewards are great encouragement to keep you going during the hardest first days. After that you can probably reward yourself once a week with a magazine, a long-distance call to a supportive friend, a siesta, a trip to the movies or whatever makes you tick.

    Later you can change the rewards to monthly and then at the end of the year you can pick an anniversary reward. Something that you’ll look forward to. You deserve it and you’ll have earned it.

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    Whatever your plans and goals are for this year, I’d do wish you luck with them but remember, it’s your life and you make your own luck.

    Decide what you want to do this year, plan how to get it and go for it. I’ll definitely be cheering you on.

    Are you planning to make a New Year’s resolution? What is it and is it something you’ve tried to do before or something new?

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