Most people by this point of the year have given up on their goals. How are you doing with yours? Maybe you didn’t even set goals for 2012 because you didn’t want to break them. Even if you didn’t set goals, you probably still have wishes. What are your financial wishes for 2012? Is it to pay down debt, make better spending choices, save more, or improve your credit score? Don’t worry, I’m not psychic. That’s just what most people want.

Wishes and Goals

Wishes rarely come true because they are too vague and fanciful. After the holidays, most of us wish for a lottery win. Goals are usually more realistic than wishes, but many goals fail because they aren’t specific enough. You need something achievable to work towards, and you need the satisfaction of knowing when you’ve achieved it. If your goal is to “pay off debt” does that mean you failed if you take a loan on a new car, or if you paid off some debt, but not all?  A better way to word your goal might be “reduce credit card debt by 50% by December 31, 2012.”  You were specific about the type of debt, the dollar amount, and the date you plan to celebrate your achievement. That’s a great goal and worthy of a wish.

Goals and Plans

What’s your specific goal? Don’t worry if you don’t know yet. I’ll help you figure it out, then I’ll help you make a plan to achieve it.

There are three steps I want you to take. Step 1: figure out exactly where you are today (the starting point).  Step 2: Create your specific goal based on your current reality. Step 3: make your plan to achieve your goals.

This is not meant to be overwhelming. Let’s follow the financial story of Jason (a completely made up person):

Jason completed steps 1 and 2. He added up all his credit card debt and set a specific goal to cut that debt in half by 2013.

Jason’s Current Reality: $12,000 in credit card debt
Jason’s Goal for December 31, 2012: $6,000 in credit card debt

In order to complete Step 3 (make a plan), Jason needs to look for ways to pay $6,000 in debt during the year. To be more specific, he needs to pay an average of $500 per month. That’s assuming he is not adding new charges to his credit cards. He’ll have to pay more each month if he is. (He may need to pay more to cover his interest charges as well.)

Plans and Achievements

You might be wondering how Jason will find an extra $500 each month to pay down his credit cards. The simple answer? Earn more, spend less, or a combination of both. Jason has already cut his spending down, so he will need to earn more money.

You are probably thinking “Easier said than done!” It’s not always easy to achieve your dreams, but it’s usually worth trying.

A business coach once gave me an exercise that I found really helpful. She told me to write down 20 things I could do to increase my income. This is what we’re going to ask Jason to do.

Here are some ideas to get his creativity flowing:

1.       Work 3 more hours a week for overtime
2.       Find a part time job
3.       Sell unwanted items
4.       Turn his hobby into cash
5.       Ask for a raise

This is a brainstorming session, so Jason shouldn’t worry that his ideas aren’t realistic. The idea is to write down all the possibilities without judging them. Once he’s done writing, then he can determine which ideas to use over the next year in order to get that $500. He has a plan to earn extra money, and he has a list to follow that will help him achieve his goal.

If, like Jason, you’re trying to make your financial wishes come true this year, remember to reassess your progress during the year. Don’t wait until December 15 only to find out that your plan isn’t working. Check in with yourself monthly and make adjustments as needed.  Join me for my upcoming teleclass in February to learn more. Visit JillRussoFoster.com/YourMoney

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Details on how Jill can help below.

Now that it’s January, have you noticed that your year is starting just like years past? Are you vowing to pay off your debt, save more money, spend your money more wisely, and just get your finances organized?

Have you ever wondered where your money goes?

Do you look at your wallet or bank account and wish there was more money there?

Do you wake up during the night, and just lay there, wondering how you will pay your debt?

Do you dread looking into your finances? Is there a hidden part of you that believes, somehow, that not looking means that maybe the problems don’t exist?

You are not alone.  Most people have no idea where their money goes. Most people can’t answer questions about how much debt they have, or what their credit score is.

This year could be different!

• Do you want to know where your money is going?
• Do you want to make changes so that you can save more for fun things in your life, pay off your debt, plan for your retirement, or your children’s education?
• Do you want to improve your credit and therefore your score?
• Do you want to be able to have a system for your financial paperwork?

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Visit JillRussoFoster.com/YourMoney

Do you feel like you’re stuck?  Are your goals the same this year as the year before (and the year before that?)  Here we are near the end of another year.  Did you achieve your goal?  If not, read on.

Earlier this year, I did a talk about the things people believe about money. The attendees were given a list of money scenarios, and I asked them to check off the scenarios they believed were true about them.  Nearly everyone in the room checked off beliefs of scarcity – robbing Peter to pay Paul, not having enough to pay monthly bills, etc.  I suggested that it was their beliefs holding them back – and not their situation

Let’s go back and talk about beliefs.  Beliefs are not facts. They are often things that you learned when you were younger and you now believe them to be true (whether they are or not).  One belief that I struggle with is that I am not worthy of success.  I have done a lot of reading, and a lot of work on myself, to overcome this belief.   I have to admit that I am not fully there, and there are times that I catch myself reverting back to my old thoughts. Overcoming false beliefs can be a never ending process.

I’ve learned that I have to retrain my subconscious mind to accept a new belief or affirmation.  An affirmation is a positive belief that reframes your thoughts.  Taking my example, I replace the words “I am not worthy” with “I am deserving of happiness, success and love just the way I am.” I repeat this affirmation to myself several times a day until I believe it to be true.

You can reframe any belief into a positive affirmation.  Remember that old philosophical question:  is the glass half empty or half full?  Train your subconscious mind to think positively and you will be amazed at what life brings you when you are open to receive it.

How to set your goals for 2012:

1. Reframe each goal into an affirmation, i.e. “I deserve to be free of debt.”
2. Write down the reasons you want each goal.  Reasons can help you to see the bigger picture.  For example, if your goal is to be free of debt, you could write “I want to be stress free. I want to focus on saving for retirement. I want a more flexible monthly budget.”

Now that you’ve set your goals for 2012, try this for your 2012 resolution.

1. Think positive.
2. Be aware of when a negative belief comes up and replace it with your affirmation.
3. Make a list of the things that you are grateful for each and every day to keep you in that half full glass mode.

When you give yourself a positive outlook, you clear the path to achieving your goals in all areas of your life.

What can you do with $10? If your first thought is  “I can buy something!” you’re not alone. But, $10 won’t get you very far, and then you will be left with zero.

Another option is to save the $10.

You are probably thinking that isn’t much money. Maybe you think it’s not worth going to the bank to make a deposit so small. But, look at it this way. If you saved $10 each week you would have saved $520 in a year, but with an interest rate of 1% that would be $532.46.

You are still probably thinking that’s not much money. But, after two years, you would have $1,060.20. After three years you would have $1,593.26. After five years you would have $2,675.57.

Most people can find $10 a week to put into savings. If you look at what you are spending, there has got to be something you can eliminate to get the $10. On the other hand, if you think that $10 a week isn’t enough, challenge yourself to save more. Can you find $20 to save? That would give you $5,249 in five years. Can you find $50 to save? That would give you $13,379 in five years.

Saving any amount on a regular basis can give you money to fall back on. So the next time you are out shopping, think about the item on the shelf. Is it worth buying, or would it be better to save the money instead?

I have to admit that I am not the best at saving money. There are months that I have plenty of extra, and that can go into savings. But there are other months that things happen (you know what I mean). And then there are those things I really want (but don’t need). Yes, this even happens to me.

I mentioned to you back in July that I was tracking my spending and making changes. I need to do this periodically to see where my money is going…so that I can be aware. I am just finishing up my September tracking as you are reading this. I know all about my monthly bills, but it’s the little things that get away from me. I need to be a more mindful spender and consider what I am spending my money on.

Here are two things that help me save money.

First, my savings account is not at the bank where I have my checking account. The local bank makes it too easy for me to access my money. It’s nearby and would be linked to checking. So, I have my savings account in a virtual bank – there are no branches where I can withdraw cash and a transfer takes time. In addition, I don’t have my savings linked to an ATM card. Therefore, it’s not easy for me to access the money if a want arises.

What you should take away from this: if you are having trouble saving as much as you want, don’t have your savings account easily accessible.

Second, I have multiple savings accounts – each for a specific need.

• vacation savings (for my travels)
• home repair savings (after the weather we have had this year, all homeowners need one of these)
• emergency savings (for whatever life throws at you)
• long-term goal savings (for whatever your plans are – home, car, education, retirement).

These are two of the things that I do to make my savings work for me, but it’s not enough. Help me out and tell me what you do to save money.

You see this happen all the time. You are in a situation with other people and someone mentions his nice vacation plans. What is the first thing that pops into your head? Are you genuinely happy for him or do you automatically think about how much he’s spending (that includes jealous thoughts of the “he must be making more money than me” kind). You know what I mean.

But in the past few years, I have learned to stop comparing my financial situation with friends and family (I am getting better about this). I have come to realize that I am projecting my values and beliefs onto other people. What I think or believe about another person’s finances has no basis in reality. I am not in their shoes and don’t know what their situation is.

People spend money on things that are important to them. I know that some people may think I travel a lot. When one vacation ends, I am already planning the next. I personally always want to have a trip to look forward to. You might be thinking thoughts like “how can she afford it?” or “where does she get the money to travel?” You may even be envious. But you won’t know exactly how I make my little dreams come true because personal finances are just that – personal.

The other side of comparing your finances is the presumption that you are somehow morally better or worse than others. Grim tales of credit card debt are all over the news, often mixed with stories of foreclosure and homelessness. You may feel good about yourself because your debt is lower, but do you know why the person on the news has the debt? Was it really insane overspending, or was it a medical emergency or a layoff. Maybe the credit cards were used as a last resort to pay bills?

I have heard it said that “to compare is to despair.” This thought process of judging others is detrimental to you. You have no idea whether another household spends more money than they have, is in debt to their eyeballs, or has planned ahead to achieve their desires. You don’t know how much they earn or how much they give to charity. It is much easier to judge someone else than look inward at your own spending habits.

In the budgeting process, people track their daily expenses to see how much they spend and in what category. This can be a great exercise. Once you see where your money is going, you can make life-changing decisions. Where do you want to spend? What do you want to save for?

There are no right or wrong answers. There are only personal choices. Maybe you choose electronics over vacations. Maybe you choose decorating and entertaining over both. Maybe you choose to give your children spectacular holidays or birthdays over everything else. These are the kind of choices your neighbors, friends and family members made when they did something that impressed you and made you envious. They simply chose to spend their money in a different way than you.

So the next time you see someone order an expensive meal at a five star restaurant, purchasing the latest greatest electronics, or buying a designer outfit, don’t judge them. Not only is the thought process destructive, but it is a total waste of your time.