Around the holidays, many of us declare we want to make changes in our lives, and then we will follow it with a statement such as, “but I want to get started after the new year.” Or “but I’m going to make it my New Year’s Resolution for 2011.” Guess what, IT’S AFTER THE HOLIDAYS and if you are serious about reaching your goal in 2011 then now is the time to get started.

Several of you have told us that you want to live on a budget. Obviously, all of us at The Finance Coach get excited whenever we hear people make that statement. However, if that is your goal, you will fail. You don’t really want to live on a budget – you want the results that living on a budget can provide.

So what result do you want from living on a budget in 2011?

• Do you want to eliminate the collection calls?
• Do you want to pay off debt?
• Do you want to stop living paycheck to paycheck?
• Do you want to stop arguing with your spouse about money?
• Do you want to have the security of an Emergency Fund?
• Do you want to be able to increase your investment into your 401k?
• Do you want to be able to help your children pay for college?
• Do you want all of this?

If you are serious about reaching your goal, then follow these 3 steps:

Step 1: Figure out where your money is going right now.

Start tracking where you are spending your money. You may want to invest in software such as Quicken. There are also free online money management programs such as www.Mint.com. If a computer program isn’t right for you, you can also track it using pencil and paper. This step should be completed within the next 2 weeks.

Step 2: Develop a budget for yourself

Now that you have tracked how you are spending your money, take the next step and develop a budget so that you can be proactive and determine ahead of time how you will spend your money. Your budget should be done monthly. Your first budget should be ready to go for February at the latest.

Step 3: Be willing to do what it takes

Answer the following question. What is the one thing that I do not want to do, but if I did it, it would help me reach my goal? This is going to be different for everyone. It may be as simple as cutting off the cable, it may be communicating more with your spouse, it may be getting a part time job, and maybe it is telling your kids NO occasionally. Some of you may determine that you need the help of a professional to accomplish your financial goals. You have to determine for yourself what is it that is holding your financial victory hostage?

If The Finance Coach can help you achieve financial victory in 2011, give us a call at 317-858-7270. We offer a free initial 45 minute consultation.