You can design a plan to work out your finances just like you design a workout to make your body stronger. Both benefit from having a clear plan, a gradual build up, a workout period, and a cool down. Here are some specific steps you can take to build your own “Financial Workout:†The Burn to Earn Hour Workout:
Preparation- Ten Minutes:
Write down everything you spend money on for a month. Don’t evaluate it, just write it on a slip of paper, or jot a note on a receipt, and drop it in a jar, or a container. This is not part of the actual work out, but as you get started and have an actual work out, then this step can be part of your daily plan, and its just a moment here and there, but provides actual valuable “prep†benefits just like your cardio workout.
Planning Warm up- Ten Minutes:
Sit down with your spouse, and your family and discuss needs, wants and bills. Have everyone have a notebook, tell them it’s their “job†and responsibility to write things down they want to purchase, and things they need. At first, just like starting a regular workout, you will only do this a couple times a week, and then increase to maybe three times a week. Make each meeting short, to the point, and a new habit for your family.
Strength Training- Ten Minutes:
Make it a point to daily write down ideas about how you can reduce, reuse, or recycle in your household. Think of ideas to save money, and write them down. Carry the notebook with you; a small spiral notebook makes it easier sometimes. Think specifically how your family can reduce spending, and how to set goals, and strengthen your family finances. Goals to think about specifically should include: A) How to retire debts you have. B) How to reduce the interest and pay it off on debts you own. C) Ways specifically to spend less and save more.
Power Burn- Twenty Minutes:
This is the meat and potatoes, the down and dirty, and the guts of your debt plan. Make a Budget. If you don’t know how to begin, try asking people you know that seem to be financially solvent where they got THEIR budget. Also talk to financial people who advise the public, and ask about typical budget methods. Look on the Kiplinger site on the Internet for other resources. Create and establish a Budget. Evaluate it, follow it, occasionally tweak it but USE it.
Take your Pulse/Cool down- Ten Minutes:
As you work your budget, work on self-discipline. Be firm, and see your results. Take the time to obtain your credit report, and then use it during your “next workout†to help make needed adjustments. Get a big drink of cool water.. You have earned it on your way to debt freedom!
