2010 Financial Plan
I’m not big on New Years resolutions for many reasons that I won’t get into here, but I am big on long term goals so let’s take a look at my 2010 financial plan. Hopefully, some of my insight will help you make your plans for the new year.
The biggest problem with plans or resolutions is that most people tend to create unrealistic, large goals that they have a 5% chance of meeting. Also, everyone is always looking for that one quick fix or the one “key” to financial success. Unfortunately, financial success is obtained through a much more mundane strategy. The appropriate strategy is doing more of the little things, more frequently and with higher success.
The little things include:
- Tracking your spending more accurately and with more detail
- Aim to spend slightly less each month when compared to the previous month
- Aim to earn slightly more money each month when compared to the previous month
- Work to increase the rate of return on your savings and investments
By combining the above items, you can easily increase the money you save each month by several percentage points. Rather than striving to eat rice & beans for 3 months, why don’t you try and spend 10% less on food in 2010 than you did in 2009. That is a significant difference.
Doing the small things right, combined with continued growth in your investing skills and possibly your side income, you will be set up for a beautiful 2010.
What are your goals for 2010? Leave your comments below.