Member since: 9/15/2007
"Money grows on the tree of patience." Proverbs
Welcome back to the second in the series of "Money Mondays". What better kick start to your week than a serious chat about your financial future? I'm on my own journey to make more sense of my dollars and cents and I thought it would be more fun if I brought YOU along with me. One of the first surprises I've encountered is that the whole arena of money management isn't nearly as boring as I thought. I expected to be lulled to sleep the moment I encountered blogs on the topic or undertook the all-time dreaded task, budgeting. As I began to realize that people with disabilities and the issues that impact our financial lives are no where to be found in these discussions, I decided that we all need to wake up, take control of our money matters, and start increasing the opportunities available to us as individuals and as a group through sharing our knowledge.
[Caption:Tree with money growing on it.]
Last week, I shared my experiences of lowering my credit card interest rates. The very essence of debt is really the effect our past actions are having on our present options and future opportunities. It's a necessary evil to address but today I'd like to set our sights on the future. What are your hopes, dreams, goals, and aspirations? I've created a free Word document for you to download that should help organize your plans into three distinct categories.
Download your first Money Matters worksheet HERE to start mapping your priorities.
Consider these definitions as you enter your goals:
1. Long-term goals: Where do you want to be in 1, 5, or maybe 10, years? What big purchases would you like to make? Would you like to own a home, get married, take an international trip, go back to college? These are often our most expensive goals but they don't have to be. Long term goals are the most important benchmarks we set because they are both what we want the most and what is most difficult to achieve.
2. Short-term goals: What are your needs and wants in the relatively near future? Would you like to take a vacation this summer? Pay back a a certain percentage of your debt? These goals aren't as 'dreamy' as our long term goals because they usually include some necessities as well. One of my short term goals is to purchase a small reserve of wheelchair parts incase of emergencies. Right now, I don't even have a spare tire!
3. Immediate goals: Here's where you list that gadget that's been swirling in your head for weeks, those new shoes you can't hardly resist, and (in my case) a pricey trip to the vet for my dogs' to get their checkups. These expenses are in the timeframe of NOW and we'll need to see exactly how they match up to your other goals.
As I went through this process, I began to see how my choices today extend the length of time it will take me to reach my long-term goals. I also noticed that many of the things I'm actually spending money on (like my "Salad" salad today) don't even make the list! Still, the challenge is overwhelming for some to take this massive list and figure out what's really most important. Have no fear-the PRIORITIZER IS HERE! I found this nifty tool that allows you to enter all your goals in one jumbled list and it uses forced choice analysis (a fancy psychological/statistics term that means it makes you choose by offering simple logical "either/or" choices). The end result is a list of what YOU deemed most important. Here's mine:
[Picture caption: List of my priorities from highest to lowest: getting out of credit card debt, plane tickets home for 2 weddings, buying a new scanner, renewing my professional memberships, buying a Wii, starting a high interest savings account, buying and adapting a Scion XB, subscribing to 3 leisure magazines, saving for our move next December, home decor improvements.]
Feel free to print out your lists of goals and priorities. Post them in a place that you'll be able to check your progress routinely. I'd love to hear if these tips and tools work for you and if you have a money matter that you'd like to see me explore, please let me know!
Bonus tip: The online tool, The Prioritizer, can be used for other decisions too. I entered my 'to do' list for tomorrow and it helped me decide what I should do first. It could also be used to (help) decide which car to buy, which college to attend, or what to do on your next birthday!
Hmmm, you might want to rethink the priority of number six which is about saving. Pay yourself first, and you'll be able to build up emergency cash and this will help avoid credit card use a year from now.
Yeah-I was actually surprised at how low the savings account came up in my priorities but I guess that's another strength of this little tool. It points out how you might need to rethink the order of your goals--so it doesn't so much prioritize FOR you but shows how you are prioritizing now to see whether that's really what you want.
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I love these! Keep it up!
another good Blog keep them comming.
Hi, Kara!
Why is it even harder to discuss money than it is to discuss sex?
I was delighted to read the blog. Living on a budget is a daily challenge. I have gotten much better in the last few years. Part of my reasons for overspending is an absurd sense of entitlement. I lost my mobility, therefore I shouldn't have to watch what I spend on. Juvenile, but true. I look much forward to many more blogs on this subject. Thanks so much!
Bonnie
This is a fantastic blog! In my opinion, everyone should strive for "financial literacy". My struggle with money 11 years ago showed me that I needed to know more about my finances - now I know more, and my life has countless abundance as a result.
Unless you come into money by some rich relative, most will find themselves getting into financial hardship.
The problem with credit cards is that it's easy to get and hard to repay especially if one goes overboard on spending.
We assume that one can repay within a moth or two but something else comes up and you are reaching for the card again.
I have allowed myself to get into this delema and now I'm fighting back.
I carry only One card for extreme emergencies and avoid credit altogether.
Prior to my bills being paid, I pay myself first, whether it be $25.00 or $50.00 and opened an account with a different bank so I won't use it.
I have gathered all my bill's, and each month I pay extra on the lowest one and work my way up the list.
It will take time but I'm determined to rid my finances.
allot of company's offer 12 months free interest but if you can't pay it off in that time all that interest gets back on and you're at the mercy of hightinterest rates.
I have come to the conclusion that If I can't afford to pay for an item, then forget about it until I can.
There are times when we can't help but to borrow again and that's when the unexpected happens such as home or auto repairsbut if I can keep adding to my savings Without digging into it then I will have something to fall back on for those unexpected problems.
The road to freedom is not an easy task but with strong will and a littles less spending, I will get out of debt.
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