New Year’s Resolutions…

I do it every year.  Make New Year’s resolutions that I rarely ever keep.  Usually it’s to get in better shape and drop a few pounds.  This year I started moving toward that goal well before the end of the year and by New Year’s Eve I had shed 10 pounds, 4 sizes and I’m just about ready for my first half marathon next month.  So the question was, what do I resolve to do now? 

With the economy in the tank and everyone’s job in question these days, I decided to focus my attention on finances.  Only a few short years ago I was living debt free with a paid off car and no credit card debt.  It was an incredible feeling of freedom.  Well that changed when my beautiful son came along and I decided to quit my job.  Now, I’d like to be debt free again.  It’s not going to be as easy as it was last time.  With a 20 month old, and a different job with a lower salary that I used to have, I don’t have as much expendible income as a few years ago.  But I’m sure it can be done!  The first step is to learn exactly where my money is going.  There are some things that I’m going to have to shell out money for every month…diapers, food, mortgage, etc.  But there is fat in everyone’s spending and often you don’t realize where that is until you pay close attention.  So starting today, (I’ll go back and do yesterday too) I’m going to keep meticulous track of every cent I spend to find out hat I can cut out.

I am relatively responsible when it comes to credit cards…well maybe not.  I usually ONLY use my American Express because it keeps me honest.  Whatever I charge must be paid off at the end of the month.  But from now on, I’m going to try to pay cash for everything.  Any time I have to pull out the green to make a purchase I certainly think more closely about what it is I’m buying…do I really need it?  When I plop doen the plastic, those thoughts rarely do through my mind.  Paying with actual money makes the transaction (or the subtraction from my account) much more real for me. 

With encouraging words from financial planner Scott Cole, I’ve acknowledged that becoming debt free once again may take longer than 52 weeks.  I’ve found a few websites that can actually where you can plug in each credit card debt along with it’s interest rate and it’ll tell you how much you have to pay on each to get out of debt by a certain date…like December 31st, 2009.  I’ve included that link along with a link to Dave Ramsey’s website with information on how to effectlively target your debt.  Good luck to you in whatever you resolve to do in 2009!