I had something wonderful happen to me recently that I wanted to share.
I have a room in my house which serves many purposes. It is our guest bedroom, office, art studio, and general junk room. One of my New Year promises (see I avoided the resolution trap) was to add beauty and color in my life. So we decided to paint. During the dismantling of this room something occurred to me – what a disorganized mess – who lives here!
You know the room where you encounter “I’ll get to that task later syndrome”! This was my own version of the land of misfit toys. Papers were misfiled in a 4-drawer filing cabinet. I found receipts which we never claimed on our taxes. We had purchased items, some twice or three times. I had enough paper, pens and school supplies to run a small private school. Then it occurred to me – this didn’t happen overnight. We just forgot to take care of it, we were busy, but worse yet – just like the sky opening up – AHHHH… that’s the secret.
But I’m not going to tell you just yet, first I’m going to lay a little more wisdom on you. Think about living with less, and spending less? Does that thought make you sweat? Do you get a feeling of panic?
Most people wouldn’t feel comfortable without eight credit cards in their wallets. How about living on 10% less each and every month. You could do it quiet easily and stop living on credit tomorrow. Take the next 45 days and go on a crash credit diet. December is over, it should be easy. Don’t pull out the plastic take this year and be on a credit diet – only pay cash for items. But the real trick is tracking where you’re spending the money.
First you roll 10% savings (of your monthly net earnings) and pay off your consumer debt. You know all the stuff you bought for the holidays which is already forgotten. You’ll see the balances melt away like winter snow. When the breathing room finally catches up to you – roll that money into your next biggest debt – your car payment or your mortgage.
Of course when you choose to live on cash someone will be very sad. Your bank or credit card company will be very lonely and miss you terribly…Do you care?
Set the 2012 money goals – Small, measurable, achievable, realistic and time driven. Don’t turn down the heat to 60 and live on mac and cheese for a year. Make the goal to be consumer debt free by 2013.
Not sure where you are on the debt scale or what your FICO score is? I found a cool website – check it out
The big A-HA moment I had – stay organized and know where your money goes. Write down your spending for a month you will be shocked where the holes are in your financial budget.
Let me know if you’re going on a Debt Diet – Next week – I’ll focus on the idea of organization as a tool for getting rich.
Live, love and pay it forward,
Your Momprenure Coach