Help with approaching and understanding financial goals

[I joined up]

So needless to say (why do we say that ?) I would like to improve my financial situation and get it to the point where I can spend my time doing the things I enjoy a.k.a Freedom!!

I have debt and no savings whatsoever and also closer to 40 than 30 .

So I realize clearing my debt should be my first focus.

Once I have done this though I'm really unsure how to approach the goal of being financially stable and improving.

I know I could set a target and just save save save for it but this doesn't seem to be a very effective approach.

If anyone has any tips or stories of how they changed and improved their financial situation I'd love to hear what you have to say.

[CoolBee]

To get started, just take a few simple steps.

(1) get a little cashbook (or use a spreadsheet if you prefer) and write down EVERYTHING you spend.

(2) after you get used to that, count all your cash. Then every day or so, count it again and see if what you think you spent = what you must have spent! (And don't forget to add on cash you take out of an ATM or get given or find down the sofa or in the street!)

(3) if you don't already know what you NEED to live on, start preparing a budget. There are many forms available, here's a link to one: Basic Budget Worksheet for Setting Up Your Personal Budget

(4) Start saving - I know you have nothing, but just open an account somewhere that you can put even $1 a month away just to start! Never mind the interest rate - this is just so you can get even the teensiest, tiniest little bit of savings going. If you can do it on automatic deduction from a checking account, so much the better.

(btw I'm using US terminology because I'm assuming you're probably from there though I might be entirely wrong!)

(5) If you have a checking account, consider starting to set up automatic deductions for your monthly bills such as rent or electricity or whatever to make sure you don't forget to pay them. BUT be sure to take that into account when you are checking your balances!

EG: Start of month $600 BUT $200 of automatic deductions - so 'really' you only have $400. Sadly, my father is one of those people who believes what the ATM says his balance is and doesn't think 'ok, well off that I have to take £X for this or that bill' and then wonders why things bounce or his account gets overdrawn

(6) If you have lots of credit card debts - use the 'snowballing' technique.

(7) Search the site for posts by Mounds who posted a lot about his getting out of debt experiences last year and earlier this year.

Moving on and becoming financially stable:

First, what does that mean to you?

For example, a lot of books/sites recommend that your first goal should be to have savings of at least 1 month's salary tucked away safely. You may like to set that as your first target.

Secondly, you can try playing one of the prosperity games that are running on the Intention manifestation forum area. Basically, pick an amount you are comfortable with as a starter - eg I am using £1000, others are using $1000, others maybe $100 - up to you! Then on day one you have to 'spend' (write down what you would do with that amount - either on the forum or in private - I'm doing it privately) and on day 2, you have say $2000, on day 3 $3000 and so on. This will start to oil your mental gears about what you do want and so on. Once you've loosened up, then you could shift up a notch to the $1000000. I think it's useful to start at the lower level because that's the level you get this and that paid off, a few presents for the family, the new computer, car or whatever floats your boat!

[GregD]

Hi, I know this is a short advice, but this is the way I live. Focus on making more money instead of saving money. The main reason is that saving has a limit whereas earning does not. I hope this helps you.

[Peterw]

Another thing you can do is go thorugh your last few bank statements and look for recurring direct debits etc that you don't need. You can also use this to get an accurate snapshot of your monthly spend.

Then make a plan to snowball your debt. Coming up with ways to make more money and read "Rich Dad Poor Dad".

I paid off all my debt this year and it's one of the best things I've ever done