This time last year, I had three New Year resolutions: pay off all consumer debt in four months, increase emergency fund to six months worth of income by December and work smarter to accomplish more in less time.
All done within the time frame I specified. Then things happened within the year that turned everything wonky again. Dang.
What I learned, however, is that some reasons for taking two steps backward and one step forward in personal finance may not always be bad. Like buying a house that the family loves and enjoys and getting into mortgage debt because of it. For some it can be getting married, having a baby, a child going to college, sacrificing income from work to give more attention to a wayward teenage son, saving a marriage by going on a cruise…
Life happens. Money is just a means to enjoy life. The key is balance. And a good disposition.
My life goals for 2009:
- Never miss payments on credit card and mortgage loan. Last year, I had two late payments on my credit card just because I misread my statement, and boy did that really tick me off! I hate paying credit card interest, and I hate paying late payment fees even more.
- Pay off low-interest consumer debt in six months.
- Rebuild emergency fund to six months worth of income. This will take around a year of careful saving and even more careful spending.
- Boost education funds for the children by carefully investing money to take advantage of the upside from this terribly depressing market. The market has got to improve some time, right?
- Lose weight. Just five pounds will make me happy.
Strategies:
- Focus. A lot of people don’t believe in New Year resolutions. It’s a hyped way to sure failure, some believe. I’m from the camp that says trying is better than doing nothing. One strategy, however, to try and succeed is to focus. Goals are of better use when they are remembered and taken seriously.
- Use teamwork. For married people like me, reaching goals is a LOT easier when you have the whole family focused on it as well. It’s going to be hard to stick to a spending plan when you’re walking through a mall and someone is aching for a PSP and you really, really, really want to give him what he wants. (Ha! You know who you are!) We are all weaklings when it comes to people we love, so we need others to control US!
- Think of your goals everyday. Fifteen minutes is not that long, but it can do wonders for your mindset for the rest of the day. Visualize it. Believe that you can achieve it.
- Be flexible. Failures do not have to be setbacks. Allow yourself to be upset for 15 minutes, then charge ahead again!
How about you?
January 5th, 2009 at 12:45 pm
Reach my annual savings goal and get what I need (and some wants).
January 5th, 2009 at 12:36 pm
I started a business in the last quarter of 2008. And it’s kinda new concept. So my goal for this year is to educate people and SME’s the advantages of my product which is SaaS (software as a service). It’s one lofty goal, but its something that will also change my life forever - success or failure of my business depends on this one.
January 5th, 2009 at 11:00 am
I’ve already started my new year’s resolution. I made my savings goal but not my emergency funds as I went on a European trip. So.. I’m back with a vengeance. I’m planning to up my savings and replenish my emergency fund. Hopefully, I will be able to save some more for my travel fund. I’m hoping to have my annual birthday celebration somewhere.
January 4th, 2009 at 7:36 pm
i don’t think I have much to share in this arena. You guys seems like experts. But during these things that you brought up, don’t forget to put Christ in the center of it all.
I’m currently in Qatar and will be coming home very soon to my family. I’ve been in and out of the country since my contract allows for a bi-annual leave. But that’s not enough.
Anyway, hope all is well to everyone there in the Philippines.
BTW, I don’t want to end without mentioning that part of ‘focussing’ on your objective.
On that part of the PSP, I just would like to add specially like here, where you can buy those things cheaper, then you are really tempted to buy those PSP specially for your loves ones.
Thanks for sharing your thoughts.
January 4th, 2009 at 6:29 pm
This article gives me an idea to put together my thoughts about how I can put my finances in better shape this year and in future. And publish on my blog to keep myself reminded. Will do that soon.
But hey, I love the idea of going on a cruise to keep the marriage oozing with affection. There goes the money again.