No need for major resolutions, a one year plan or anything like that. All you have to do today is think briefly about your general personal finances, and decide this:
What’s my number one personal finance priority right now?
Chances are this will spring into your mind pretty much straight away. For example it could be:
- Get out of debt
- Make a plan to save for a holiday
- Pay a specific utility bill
- Renew some insurance at a good price
- Start an emergency fund
- File some accounts
- Maintain current financial position (stay out of debt etc)
- Increase earnings
Whatever it is, admit it to yourself, even if it’s scary.
Next, work out the specific amount of money involved, and decide a sensible, realistic plan to meet this priority. Pick a date for achieving your goal too – it’s a simple but effective way to get yourself organised and motivated, and make things happen how you want them to.
What’s happening here?
Last month I paid off my overdraft and a big chunk of my credit card. Right now my priority is to finish paying off the credit card as quickly as possible, and become debt free again. I’m only spending vouchers and store points in the January sales, and sticking to another month of emergency mode spending behaviour. My maximum time limit is twelve weeks from today.
What’s your main personal finance priority today?