1. Forgive Yourself – Don’t beat yourself up about your over-spending around the holidays or in 2009. Forgive yourself and focus on a fresh start.

2. Create Different Patterns and Values-Based Goals – If your values and goals aren’t aligned, there will be constant conflict and your chances of personal financial success will be greatly reduced. Make a list of your five most important values in order of priority. Do the same with goals. Make sure they are truly yours and not based on external expectations.

3. Track Spending (A Great Awareness Tool) – For at least three months, track your spending. Keep your list of goals and values right in your wallet so that you can refer to it when making spending decisions.  Are your goals and spending patterns aligned? For example, if you are at the mall refer to your list of goals before making a purchase. If the expenditure isn’t aligned with your goals, skip it. At the end of three months, you’ll have a clear sense of the changes that need to be made and you’ll already be well on your way.  

4. Know Your Starting Point – Read and organize financial statements regularly. Make notes and ask questions if there are things on the statements that you don’t understand. Calculate your net worth by subtracting what you owe from what you own. Even if it’s painful having a clear picture of your starting point will give you a greater chance of success.

5. Allocate Your Income Appropriately – For example, if you’re a thirty year old saving for a first home and your goal is to purchase a home within three years, estimate how much an appropriate down payment will be and how much you should be saving over the three year period on a monthly basis to meet your goal. Then make sure you’re setting that amount aside monthly.

6. Choose the Right Investment – Don’t be afraid to ask for help on this one by consulting tax and financial advisers. Make sure your assets and income are invested with the right risk/ reward balance for your goal, time frame, and risk tolerance. Ask questions so that you understand what your investments are and why they are right for you.

7. Keep as Much of What You Earn as Possible – Keep records and make sure you’re taking advantage of appropriate tax deductible expenses like mileage if you travel for business and qualified charitable donations.

8. Create a Support System – Share your goals with someone who cares and who will provide motivation, encouragement and accountability. Be sure to choose someone who will also be strong enough to encourage you without judgment.

Find the Money to Make Financial Goals Reality

As I began to deliver a speech to a group of my peers at my 20th college reunion this past weekend, I listed the things that I’d be covering in my presentation.

When I got to number four, “Find the Money to Make Goals Reality”, I heard a faint, “Hope you’ve got a magic trick for that one” from the front row.

I always enjoy audience participation but that comment was a gift (I know you weren’t expecting the word gift there). It gave me the opportunity to focus on number four for a while.

My reply went something like this, “We all know that we have limited resources and many of us believe that that we should subtract fixed costs from income to “Find the Money to Make Goals Reality”.

I go a step further. My contention is that nothing is fixed and if your so called fixed costs (mortgage, taxes, high end vehicles etc.) are preventing you from achieving your goals, then you either need to reevaluate your goals or your lifestyle.

People come to America from all over the world. Many of them share housing and live modestly while they save and invest in futures together; in true pioneer fashion.

Many of us that are born here have no sense of the pioneer spirit, couldn’t imagine sharing a living space and are out there all alone trying to make a business a success.

In light of the current economy maybe we she revisit the pioneer spirit that made America ~America.”

That may not have been my most popular response of all time. But as much as I’d like to be popular, that’s not my purpose. My purpose is to educate and be an advocate for financial security.

To that end, I encourage you to spend a few minutes listing your goals and your fixed costs and making sure that they are in sync so that you can create the life you want for yourself and your family.