financial reflections

I haven’t posted in the past week for a few different reasons.  One of them is a minor setback I had financially.  This time, it wasn’t due to a job loss, medical bills or the usual financial setbacks people have to overcome.  What I had was the kind of financial problem that got me into my current situation in the first place - a break of concentration.  Here’s my plan to get back on track and stay there.

Like everyone, I have my ups and downs.  I went to Dave Ramsey’s seminar and was fired up.  I kept up on the bills and pushed forward with my finance.  But recently I started getting into a few bad habits.  I did the same sorts of things I did when times were good in the roaring ’90s.  I kept close track of the money until the dot-com money started rolling in.  I lived large and life was good - until 09/11/01.

After the bust, I stayed employed, but at far less that I earned before.  But I kept the bad habits I had developed.  I don’t plan on repeating that pattern, so I have these goals to help me overcome financial problems before they happen:

1. Track my checking account five days a week
   That might sound obsessive to some, but I find that I always do much better financially when I know where I am on a daily basis.  The fact is, that if I keep up with my check register, it takes mere minutes a day.  I know where I am financially, and I’m much less likely to stray from my budget.
2. Keep a monthly budget
   This is the next level up from my day to day work, and something I’ve honestly never done.  The results have been amazing.  I estimate what’s coming in (in my line of work, that’s pretty easy) and allocate the places the money goes.  I’ve paid down thousands in debt already.
3. Pay off my debts
   As I mentioned before, the way to grow my net worth is to target how I use my income.  The best way I know to move forward is to eliminate debt, starting with those credit cards.
4. Build savings
   Once I have the cards done, I’ll keep building my savings multiple ways.  An emergency savings fund, a tax-defered account and maybe even something like stocks or real estate.  That’s a ways off, but for once it’s actually on the horizon.

If I follow this plan, I’m pretty sure I’ll land on my feet if the ground gives way again.  What I need to do is stick with it like I never have before.  Continued effort is like compound interest, with time, it pays far more than one might expect.  Oh, and I do have one more goal - to post here multiple times a week with my progress and things I learn on the way.