I hear about people wanting to get out of debt or make more money and I instantly think to myself, how do you plan on doing that? I'd say if you're just having thoughts about getting your finances together or are just looking for ways to be better with your money, I'd encourage you to have a plan.
You want to be debt free? What do you need to do to get to that point? Financial success doesn't just happen to fall into your lap, unless you get a sweet inheritance or win the lottery. It takes planning and discipline. If you're just looking to make extra money, you have to plan out how you're going to do that. It could be working more hours at your current job, taking on a second job or starting up a side business. You still need to plan how you're going to make that happen. Do you want to work overtime in the morning or afternoon? Will the part time job be nights and weekends, or just weekends? If you start a side business, that takes a lot of planning. You need to figure out what you're going to do and how you're going to go about doing it.
Most people who I talk to that are out of debt or getting close to it usually had a plan or are currently working through a plan. People who don't take control of their finances and just float through life don't seem to have much success with their finances. Why is this? If you have no plan, you have no direction. If you have things that you'd like to accomplish, decide what your goals are and make a plan of how you'll achieve that goal. Don't just say, "I'd like to get out of debt." Then continue spending like you always have, pay minimum payments and expect you debts to quickly melt away. Figure out ways to reduce spending and attack the debt with your extra money. I can go on and on with what to do about getting out of debt, but my main goal for writing this is to tell the importance of a plan.
Another important reason for having a plan is that it keeps you from making foolish or rush decisions. If you plan to make a large purchase you can figure out a way to save for that item instead of just rushing into purchases. Not having a plan can lead to debt and figuring out how to pay for it later. Having a plan greatly reduces worry and stress because you're in control of your finances, not the credit cards or loan payments.
Obviously we can't plan for everything that comes up in life. We can plan for the unexpected by having savings on hand instead of just having a credit that we use for emergencies. Going into debt during an emergency can create an even larger emergency. I strongly encourage you to figure out what your financial goals are and have a plan to make them happen!
Tune in next week for my next topic called. "Swallow your pride"
