You are reading Week 52 of 52 Weeks to Eliminate Debt & Curb Spending. Please read the overview here to learn more about the series & get your FREE financial planner. If you just joined us, please start with week 1.

WE MADE IT!!!

This final week of the year, we are going to look at how you can focus on debt relief success. While we have mentioned time and again that you must maintain focus, we feel it is important to end the year on this note. Some things simply need to be repeated before they will sink in.

Don’t get caught up in small failures. Give yourself break and accept that everyone will struggle in their journey at some point. We all make bad decisions, but the difference is when we work to fix those choices and not repeat the cycle. Don’t allow yourself to fall back into old habits because you made one mistake. Instead focus on getting back up and making the next step a positive one.

Don’t be afraid to start over. Sometimes life gets in the way and you just need to go back and start at square one again. Don’t be afraid to stop in your tracks and go back to the basics of creating a functional budget and making healthy short term goals.

Keep the big picture in mind. It is so important to keep your focus on the big picture. It’s not just about the short term debt relief, but about creating a truly satisfying and functional debt free life. Long term success comes from keeping the big goals in mind. When things are tough, let your focus shift to the bigger picture. Sometimes you have to look at both your short and long term goals to find success.

You have come a long way already, and there is much more to be done to secure your ultimate relief from debt. Focus this year on debt relief success. Keep your eye on the price and stop looking at just the immediate changes but the long term success you will have once you free yourself from debt.

Congratulations on a great year!

Resources – 7 Books to Help Get Out & Stay Out of Debt:

Consider purchasing or borrowing a copy of the following books to get out of debt.

• The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness by Dave Ramsey
• The Richest Man in Babylon by George S. Clason
• Maxed Out: Hard Times in the Age of Easy Credit by James Scurlock
• Zero Debt: The Ultimate Guide to Financial Freedom 2nd edition by Lynnette Khalfani-Cox
• How to Get Out of Debt, Stay Out of Debt, and Live Prosperously*: Based on the Proven Principles and Techniques of Debtors Anonymous by Jerrold Mundis
• The Millionaire Next Door: The Surprising Secrets of America’s Wealthy by Thomas J. Stanley and William D. Danko
• The Money Book for the Young, Fabulous & Broke by Suze Orman

Disclosure: I am not a financial adviser nor do I have formal financial training. All articles are for informational purposes only and should not be interpreted as financial advice or consultation. Please consult your account and/or financial adviser before making changes to your finances. All situations are different, so please consult a professional to determine your individual needs.

You are reading Week 51 of 52 Weeks to Eliminate Debt & Curb Spending. Please read the overview here to learn more about the series & get your FREE financial planner. If you just joined us, please start with week 1.

If you have seen success this year in your quest to pay off debt, Don’t Fall Victim To The Debt Trap Again! It is so important to keep your focus, and not lose track of your goals. Remember back at the first of the year when we encouraged you to make real goals? Now is the time to evaluate those a bit, but also remember that your goals weren’t just about the short term, but about long term debt relief.

Stop using credit for any reason. If you feel like you are going to be tempted to use your credit cards for wants instead of needs that can be paid off, it may be wise to pull the old trick of cutting those cards up. You can easily order a new card later down the road when you feel like you are stronger in your financial situation.

Don’t stop saving just because a debt is paid off. This is important for our first debt, as well as debts to come. Just because you paid off one balance doesn’t make that monthly payment amount free money again. Instead, focus that money toward you next debt in line. If you have successfully paid off all of your debt (YAY!), then focus those payments toward your savings and retirement plans.

Don’t change your spending habits when debt is gone. This is one of the biggest hurdles. Often times when a debt is clear, people get excited and start going back to their old style of spending. While it is perfectly acceptable to become more relaxed and not so stressed about every dime spent, it is important to maintain some discipline. Make sure to continue putting money in savings, being frugal in your spending habits overall, and focus on keeping any credit cards used paid off in FULL on a monthly basis.

Once you have paid off your debt you can relax and enjoy life a bit more, but don’t fall victim to the debt trap again. Remember, credit is not free money. It is money that belongs to someone else who is simply willing to loan it to you for a short time and make money off you in the process.

Week 51 Challenge:

Have you noticed yourself slipping back into old habits?   Stop and review your goals again.  Determine if you’ve gotten off track with your debt repayment or savings plan.  Make adjustments as necessary.

Disclosure: I am not a financial adviser nor do I have formal financial training. All articles are for informational purposes only and should not be interpreted as financial advice or consultation. Please consult your account and/or financial adviser before making changes to your finances. All situations are different, so please consult a professional to determine your individual needs.

You are reading Week 49 of 52 Weeks to Eliminate Debt & Curb Spending. Please read the overview here to learn more about the series & get your FREE financial planner. If you just joined us, please start with week 1.

The end of the year is almost upon us.  It is time to really start making plans for the future. This week take the time to Set Long Term Financial Goals. You have navigated through this year focused on the immediate needs of getting rid of debt, but you also need to look at what your long term needs will be. We have pulled together a list of things to consider when making your long term financial goals.

1. Savings for future emergency needs. We all have various needs that can crop up from time to time that don’t fit into our immediate budgets. One important long term goal is to build a savings account that will be available for future emergency needs. This can pay for things like car repairs, medical expenses or new appliances in your home.

Work in baby steps, so you stay on track and don’t get frustrated.  Start with a goal of having $500 in your savings account.  Then move to $1000.  Once you have hit that milestone, strive to have one month of expenses in your savings account.  Look at your budget.  How much money do you need each month to day bills, put food on the table and pay for incidentals?

The end goal is to have 3 months – 6 months of living expenses saved. This is your fully funded emergency fund.

If you are still paying off debt, start with having an emergency fund of $1000.  You need to determine the amount best for your situation, but having enough money in the bank to pay for an emergency without incurring further debt is key.

2. Sufficient retirement savings for yourself and your spouse. This is one of the most important long term goals you will have. As we have mentioned many times this year, social security benefits are not typically enough for anyone to live off of. Focus on providing yourself with a solid income for the rest of your life. As you plan for this retirement fund, keep in mind that inflation and fluctuations in the economy can play into what is needed later on, so always plan for more.

Once you’re out of debt and have built up your emergency fund, it will be time to move on to this next phase of saving.

Sufficient college funds for your children. If you have children you will likely want them to have the best opportunities for education. Planning ahead and saving for their college education is a choice that many will need to make. While you hope your child will receive scholarships, not every one does. Having a fund available to care for their education needs is very important for both their happiness and success, but their individual financial futures.

Remember that your child’s education is important; however, your financial future is more important.  Don’t start funding an account for college expenses until you have your own savings and retirement funds in good standing.

These along with many other long term financial goals are things you should begin considering as you work down your debt and make more room for savings in your budget.

Week 49 Challenge:

Where are you in your journey?  If you’ve crawled your way out of debt, start with fully funding your emergency fund then move onto retirement savings.  If you still have debt, continue working toward your goal of being debt free, but remember your long-term goals of financial success.

Resources:

• When should I start savings for retirement by CNN Money.
• 10 ways to prepare for retirement by US Department of Labor.
• An interesting look at paying for college in thirds by Time.com.

Disclosure: I am not a financial adviser nor do I have formal financial training. All articles are for informational purposes only and should not be interpreted as financial advice or consultation. Please consult your account and/or financial adviser before making changes to your finances. All situations are different, so please consult a professional to determine your individual needs.