I’ll just come out and say it…
We had an amazing year in 2011, financially speaking.
I’m going to tell you how we did it and how you can have similar financial success in 2012.
The wisest financial decision I believe everyone will have to make in order to see any type of financial success is to do the following.
1 – Set A Budget.
You’ve heard this millions of times therefore by now you should believe it and do it.
A budget can be very simple but in order to achieve any level of financial success you have to know what you’re earning and where it’s going.Your paychecks tell you what you’re earning, so tracking that is easy. Keeping track of what you’re spending is just as easy.
You can start a simple Budget Notebook where you can jot down your monthly bills. At the end of each month you can tally up what comes in versus what goes out.
2 – Save Some Of Your Income.
If you don’t do this you’ll never be able to break free of credit card debt and become financially successful. When I made up my mind to begin taking a portion of what I earned and putting it away no matter what, something changed.
I started out several years ago committed to putting $10 a week into our savings account. During that time it was super hard to even find $10 in our budget but I was determined.
Just the commitment to our financial success alone caused me to find ways to come up with the $10.
It was a challenge.
As I was able to begin finding the $10 with ease, I started to increase our savings goal until we were saving 15% of our income. That leads me to my third point.
3 – Create More Than One Bank Account.
This step was one of the biggest causes for last year’s financial successes. Don’t be afraid of having several separate bank accounts. They can be at the same bank but is even better when they are at different banks.
The thing about banks is that they should be used as a tool to help you reach your financial goals.
Having separated accounts helps to prevent to co-mingling of funds. If you have your emergency fund, bill money, retirement money, Kids College, Christmas savings and everything else’s all in one account it can lead to several problems.
1 – When you look at your bank ledger balance you get the impression that you have more money to spend then you really do.
2 – When an emergency arises you will be more likely to take money that is allocated to something else and use it for an emergency. Most bank take about 3 to 10 days to complete a bank to bank transfer therefore having separate accounts at separate banks makes it more of a challenge to spend funds that have already been designated to another financial category.
4 – Make More & Spend Less
This is where it can get tricky. The media is reporting that there are no jobs. They are saying that the economy is so bad. This may or may not be true but don’t let it stop you from setting financial goals and working toward achieving them.
Last year my brother landed a job with Amazon and my husband’s best friend was laid off from a job and hired onto a higher paying job with fewer hours before the previous job ended.
I say that to substantiate my claim that there are jobs out there. In order to conquer your finances, you’re going to have to make more money and spend less of it.
That’s a fact.
Mr. P worked two jobs and long hours up until this past year when he finally left his part-time job. During the years when he worked to make more money, I was at home finding ways to spend less of it.
I also found ways to make extra money from home in my spare time by taking surveys and blogging. After diligently sticking to our financial plans we’ve been able to pay off all of our consumer debt and work toward paying off our mortgage 15 years early.
It’s been a great year with all of its financial ups and downs. It’s the one that has really showed us how all of our time and effort has begun to pay off.
As we begin this year, we are expecting the same if not better financial successes.
Before you go, be sure to “tweet” and Facebook ‘like’ this post using the social media buttons at the top of this article.