Start by taking a piece of paper and writing down how much you owe on all your credit cards and other debts. Look up the interest rates on each of them. You will want to pay off the bills with the highest interest rate first. Budget how much you can pay off each month on each debt- the most money going to the one with the highest interest rate. Also see where you can cut back your spending in order to pay off your debts. Do not use your credit cards again, until you get out of debt. Cut them in half or freeze them if you have to. Once one debt is paid off, use the money you spent paying that debt off to the next highest interest rate debt. Say you were paying $100 a month to your highest credit card, Micromart. After you pay off Micromart you can use the $100 a month plus what you have already paying for your new highest interest rate debt. It may take a few years to get out from under your debt, but it is worth it. And once you are out, try to pay off your credit card bill in full every month.
First decide how much you want to save each month and what you are saving it for. Then you need to decide where that money is coming from. What do you need to cut back on? Put the amount you want to save in your budget under fixed expenses. Every paycheck make a check out to your savings account first. If you wait to see if there will be enough to save at the end of the month, there won't be. Somehow we can always find something "important" to spend the money on.
This is very personal because we each have different priorities. What you need to decide is what is important to you and your family. Start by going over the budget list. Is watching movies that important to you or can you wait for the video? Can you cut out dining out so much? Maybe you can cook something up from the gourmet food section of the grocery store. Vacations may be very important to you. Then you need to find something less important to you to get the money from so you can have the money to go to the Carribean. Write down your new budget. Now every time you go to buy something ask, "Is this really important to me?" "Am I willing to sacrifice what I really want for this?" If you feel the urge to buy something, try waiting 24 hours before getting it. If you are lucky the urge will pass.
1. Visualize success
2. Select realistic goals and write them down
3. Believe in yourself
4. Plan Action
5. Set target date
6. Evaluate
From Creative Homemaking by Joanne B. Doxey
Good luck this year and I hope you reach all your financial goals.
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