Christmas and the New Year are fast approaching, it is the time of the year when people will over spend and over commit. It can sometimes take the next 12 months to get back your finances back on track (only to go through it all again the next Christmas).
As a result, I thought that it is a great time of the year to start thinking about your goals for 2015, both financially and personally.
What needs to be put in place to achieve success next year?
Just as all marathons start with one step, achieving your financial goals is exactly the same – one step at a time. What seems as an insurmountable goal, can be achieved when you focus on just the first few steps.
Let’s have a look at what happened when we all bought our first home. Firstly, we save like crazy to at least pay down a deposit. We then take out a mortgage for the balance over a 25 to 30 year period. The bank informs us of the minimum repayment required, usually on a per month basis and we begin the process of repaying our debt. At a minimum we need to make the monthly repayment to ensure that the principal amount borrowed is repaid over term of the loan. Add to this a massive amount of interest required to be repaid over the years to the bank. That’s exactly how the banks want things to go, you take your time and the banks get rich.
Now imagine if you changed your approach. If your goal was to get rid of the banks quicker, to get rid of those ugly mortgages that just seem to hang around year after year? Even paying a small additional amount of $20 off the mortgage each week will save you thousands over the long term.
Adopt the same attitude to your other financial goals – start with small contributions and you will be surprised how quickly you see your savings build; if you don’t think you have any spare cash to contribute to your goal then review your expenses. Are there minimal unnecessary expenses you pay every day that aren’t required? Eliminate the unnecessary expenses that you pay mindlessly and channel those savings into your financial goal.
In a season of celebration (and spending) I encourage you to take the time to plan for a financially healthy and happy New Year, and all it takes to achieve your financial goals is getting started and taking that first small step.
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