5 Steps to a Financial Makeover in 2012

6 Jan

By:  Lorillia Brown-Phillips, The Money Mentor, Your Black World

It’s now 2012, and if you’re still procrastinating with making a financial leap, then you don’t want to put it off any longer.   Procrastination is never a good thing, and why have your personal finances suffer in the meantime.  If you need a financial makeover, it takes a mental commitment; one that will allow you to stay the course until the end of the year.  Here is a quick 5 step checklist that can assist you in staying committed to a financial makeover in 2012.

1.    Set Realistic Goals – Making a laundry list of all the things you want to change and correct can be intimating, and intimidation can breed failure.  Consider taking a four quarter approach when you set your financial goals.   For example during the first quarter of 2012, I will only reduce and pay down debt, and second quarter I will rebuild my credit.  There are four quarters in a year, and by taking a quarter approach, you’re slaying your financial giants in small pieces, instead of one big unrealistic punch.

2.    Write it Down – Studies show that people who write down their goals, are more committed, then people who do not.  You want to see it on paper; this will allow you to see the progress. It’s important to write your goals down; you want to see where you started and where you want to end up in December.

3.    Financial Buddy – Ask a friend or a love one to hold you accountable to reach your goals.  Individuals, who work with someone, are much more likely to reach their goals successfully.  Find someone you trust who will not make you feel bad about your financial shortfalls.

4.    Automate and Systematize – Use online tools that will allow you to program a certain dollar amount or percentage into an automatic deposit account.  If you have a job, you can go to your HR department and elect to have a designated amount of your paycheck be deposited to an outside account of your choice.

5.    Reward yourself – Once you reach a successful milestone with your quarterly goal setting.  Reward yourself without splurging, if you didn’t meet your goal as plan. Examine what did you do wrong, find out was your goal unrealistic, if so make changes so it will be attainable, but stick with it and don’t quit.

 About the Author:

Lorillia Brown-Phillips is a Financial Advisor and Author of “Jump Start Your Credit: How to Negotiate and Settled Your Debts in 10 Steps”, she can be reached at admin@brownassocllc.com or http://www.brownassocllc.com

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