Who: Who is responsible for each task
What: What is the path, What will get paid off first
Where: Where will the savings go
When: When is the deadline or date
Why: Why save money
How: How is each task going to be accomplished
The THIRD step is to look at your goals.
- Budgets that have short or long-term goals are most effective. For example, a short-term goal might be to eat out once a month without using a credit card or taking money away from the bills. Or, a long-term goal might be to take a vacation and pay cash.
- Start slowly with monthly short-term goals that are easily attained to build confidence and test your methods.
- Some suggestions for being able to eat out once a month without using a credit card are to:
- Take your lunch instead of eating out
- Use coupons on items you regularly purchase and try to get them while on sale
- Pay yourself $5 or even $1 each day and place it in your "Goal" jar
- Save your change at the end of every day
- Once you've mastered your smaller or short-term goals, start thinking long-term: Vacation, New Car, House, Patio Furniture.
How did you get out of debt? Have you ever used a "Vacation" jar or other "Goal" jar?
Please write us at substanceofliving @ gmail(dot)com if you'd like some help setting your goals or if we can be your cheerleaders.
P.S., Please seek a financial adviser for in-depth analysis of your particular situation. We are not financial advisers but have been in similar situations and want to pass along our experiences.
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