New Year Tips - Financial Freedom!

Sorry for the delay on the tips for starting the new year on a good financial foot. I had some computer issues and decided I needed to sign up for mint.com and give my views on that. Again, as always I always refer you back to a financial advisor. This blog is designed to answer general questions and give you ideas on ways to increase your savings and quality of life.

So first things first - I signed up to Mint.com and am impressed with the results. It was so easy - literally took 15 minutes to enter all my information, and get a clear read on where I am financially, as well as ways to save money and when my credit card payments are due. My only concern is that I had to enter my passwords for all my accounts. After reviewing the security of the site and reading everything I could get my hands on - I decided it was worth a try.

Now remember I subscribe to the rule of simple and no debt - (okay a little debt I am still working on paying my house off) - so I didn't have alot to enter.

Using Mint reminded me to pull my credit report to ensure it was accurate and clean up any issues - should there be any. You can do everything correct and still have inaccuracies on your credit report. A good example is we recently refinanced our home mortgage and when the report was pulled it still showed a line of credit we had closed 7 years ago as active!

I also included a New Years Tips for Financial Freedom. They are basic steps needed to gain an understanding of your current financial picture and actionable steps to implement immediately.

GENERATION MILLIONAIRE

New Year Financial Tips

In order for this year to be different than years past – you need to have a shift in your thinking regarding how you view your money. Is it a means to short term instant gratification or a means to a fulfilling and secure life? If you choose fulfilling and secure than your mindset needs to change immediately. There are some very simple steps you can take to retrain your mind and your habits to gain the FREEDOM you want everyday!


1. What are my goals? Am I getting closer or farther from them?

What do you really want? Travel, home, car, savings, retirement and to be debt free or specialty coffee, convenience of a drive thru, designer clothes or sunglasses, vending machine purchases, video games, and DVD’s.

The little purchases everyday is the problem. They keep us from our dreams and freedom. We don’t even think about them as we pull out our wallet and get further from our goals.

You don’t have to give it all up – you just need to decide. Go to the grocery and buy a case of pop/soda and take it to work, go to a consignment store for clothes, and buy a crock pot – so when you get home you have a healthy hot meal waiting.

Sometimes you do have to pick – pay off my debt or save more vs. the little extras so you can get a head. It is your choice. The difference between the people who have money and those who don’t is CHOICE.


2. Where is my money and what have I been doing with it?

The first step it to find out where you are financially – the only way to stop the bleeding is to locate the cut. List all your debts or liabilities. Get out your credit card statements, student loans, car loans, mortgage, and equity lines. How much do you owe?

Next list all your assets. Savings, checking, investment accounts. CD’s, college savings plans and money under the mattress. How much do you have?

Subtract the Liabilities form the Assets. It does not matter what the number is – what is important is you face it and decide to make a change in your spending habits. We can all do better with awareness.

3. What am I doing everyday with my money?

Track every penny you spend over the next month. Write down everything everyday. When you buy something out of a vending machine, pick up a newspaper, put change in a parking meter, make a mortgage payment, fill up your gas tank or buy a cup of coffee – I mean every cent needs to be logged.

If possible go to a cash system. It is proven that we spend less on purchases when we pull out an actual dollar bill vs. a credit or debit card. It is hard to part with the green.

You will be shocked at the amount of money that goes to things that you really don’t value and keep you from your long term goals.

4. Awareness and next steps.

Now that you are aware of your habits and hopefully have changed your spending habits by the end of week two – you can take control of your finances and life.

If you have credit card debt – pay that off first. Take the smallest balance card and focus on paying it off, pay the minimum on the other cards to keep your credit score good. Once the lowest balance card is paid off take the amount you have been paying on that card and add it to the next card and pay it off. Continue this pattern until they are all paid off. This is called a debt snowball from Dave Ramsey.

Once you are debt free – work to set up at least 3 months of money in savings for an emergency fund.

Go to: generationmillionaire.blogspot.com for more information.

I will continue this series with the next steps in February. As soon as I correct my computer issues the financial tips will be available in a printable format.

Stay tuned........