This article is part of the monthly festival at the Crossroads of Blogs, a group of Personal Development I joined there are already more than a year. The theme this month is "7 days to ..." where the writer left the choice to be able to complete the text by replacing the three points with a topic relevant to his specialty, or the taste of the moment. I'll spare you the details but it was not easy to decide on a topic of writing for this month.
As part of personal finance, I have chosen the theme "7 days to straighten out your finances". I will argue that from the time when the groundwork has occurred, from the time when the will is there, where it was decided that enough is enough and we want to get out (a step that may extend over several months / years according to his temperament), it does not need more than a week to leave the machine. Do not see a recipe, this article assumes that the prerequisite mental work where you psychologically ready to take action has been completed. Now Wanted effective instructions to build a plan of attack.
The facts are simple and you do not have choice but to deal with it. Your finances are bad, you do not sleep, you're fed up with the situation. You have decided to take action but do not know where to start ... Here in outline the steps to follow, day by day
Day 1: Proceed by making your credit report
For more information on your credit report, read the article I wrote on the topic Financial Health: Check your credit report regularly.
One of the first things to do when things go wrong is to estimate how much it will hurt. This consists of checking your credit report, especially if it's been a while you did not. You can get your record and score Fico immediately via the Internet by visiting the website of Equifax, or you can go through the mail and get it for free by filling in the credit report request form. Know that if you opt for the free method you will get your credit report without the Fico score. However, you can deduct your score quite effectively through the results in your report. For my part, since we have only seven days to complete I opt for the quick fix (and pay) and I go through the net.
Peel your report and identify all issues requiring attention. Y-he-has errors? Or you realize that you do not always pay your cards on time? Are you in default? Or your file is pretty good, the situation is not as bad as you think. The goal is to know what you face. This exercise is one of the steps that will allow you to build a plan to rectify the situation.
Day 2: Go through everything you need
Credit cards, lines of credit, loans (car or other) mortgage ... anything that can represent your liability. Do not leave anything out, even the interest-free loans, you really want to get the real situation. Develop an action plan, a list of priorities as to what debt should be repaid first. You can not pay all at once, but you must have a plan. Again depending on the results you got on your credit report, several choices facing you:
Repay the loan that causes more harm to your credit (the one you tend to ignore perhaps, and you have made your reputation destroyed);
Repay the highest amount;
Or refund the one where the interest rate is the highest.
Note that the key word here is "Pay"; -) You decide which would be the best according to the situation in which you would be more comfortable.
Day 3: Go through your cash outflows
For this I suggest you read the post I wrote about it, How to know where your money goes? Simple and practical method. This article explains how to track all spending over a month. Once you have identified your expenditure, you should be able to notice soon enough that some of them do not make sense given your situation. We all have our pet peeves, some are just bigger in some than in others. You may buy your lunch every day or very often; or you snack between meals, bank fees are very high, your car consumes a lot ... No question of self-flagellation, the purpose of this exercise is to understand where your money goes. If you take the time it takes this step you will invariably be able to identify one or more superfluous or too high expenditure items that may help you free up funds ... funds that will go directly towards paying off your debt.
Day 4: Confirm your incoming money and look for ways to increase this amount
As you go about tracking your cash out now browse all your income. If you are like me and like most people, this exercise should be much simpler and faster ... Tell you that you will come to release more money from your usual consumption flows, the faster your debt will become that a bad memory. Or sooner you will be able to put money aside. Also, if you come to the conclusion that your income is too low compared to the amount of debt you need refund, it will consider supplement your purposes.
There are several ways to generate additional funds. In fact there are as many ways as your imagination allows. This may involve the most obvious way to look like a side job, ask for a pay rise, sell its surplus inventory (which also has the advantage of freeing your living space), turn his hobby into income ... All of course depends on your personal situation but do not ignore this option. Spend some time to determine what you can do to supplement your purposes.
Day 5: Set your goals
Yes, I am a fervent advocate of setting goals for the simple and good reason that this method works if you want to get real results! I was not still miss this opportunity to speak; -) Since Day 1 you have a good idea of your vis-à-vis behavior of your money, you know how much you owe and to whom, and how much your debt is costing you (financially and vis-à-vis potential lenders as well) . You also know where your money goes, and how much your income go up all sources. You have enough information to determine realistically how to regain control of your finances, and you must have an effective way to track your results.
Follow the SMART method, nosed approach that will help you in this exercise. Be sure to be specific, but realistic, based on facts and not on what you would like to accomplish. For example, you might set goals: "Pay my loan of $ 6,000 in 6 months" and "Establish an emergency fund of six months' salary in one year." You must ensure that the sum of your goals (and not individual objective independently) be feasible in the time available. Also, be sure to proceed with relatively short step, say a maximum of one year maturity.
Day 6: Determine the "How"
You now have all the facts in hand. You have determined the extent of the situation and set realistic goals to get away. It is relatively easy to determine the goals you want to achieve, but when it comes to take action exercise is certainly more complicated. We must now determine how you will go about it, and produce a realistic recovery plan. I recommend you use the method of "jars" or "jars" advocated by Gail Vaz-Oxlade. This is the simplest, most down-to-earth and most efficient in time. Gail's blog is also a source of inspiration if you speak English. Unfortunately, the videos of his shows, available on the Canadian site that I mention in my post, is not accessible by users who do not reside in North America ...
Day 7: Go to the act
The week has certainly not been easy. You have achieved a great way since Day 1 and you should feel relieved and happy because now you have a plan and you are given the means to succeed. You should already much better sleep at night! It takes courage to go through his personal finances, especially if one has dragged a situation that was becoming more and more urgent. 7 days, it is not so long, and the rest will not be either if you maintain your motivation. You are on the right track and you can be proud of. The sooner you start the faster you will be free so go, go service, the future is yours! The main thing is to act.
If the plan you are interested and want to give you a chance by putting it in place but have questions, please contact me and I will be happy to answer you. In particular, I intend to write more detail about Gail jars method because it is well worth investigating.
Give new, either in establishing your goals or to share your results! -)
The facts are simple and you do not have choice but to deal with it. Your finances are bad, you do not sleep, you're fed up with the situation. You have decided to take action but do not know where to start ... Here in outline the steps to follow, day by day
Day 1: Proceed by making your credit report
For more information on your credit report, read the article I wrote on the topic Financial Health: Check your credit report regularly.
One of the first things to do when things go wrong is to estimate how much it will hurt. This consists of checking your credit report, especially if it's been a while you did not. You can get your record and score Fico immediately via the Internet by visiting the website of Equifax, or you can go through the mail and get it for free by filling in the credit report request form. Know that if you opt for the free method you will get your credit report without the Fico score. However, you can deduct your score quite effectively through the results in your report. For my part, since we have only seven days to complete I opt for the quick fix (and pay) and I go through the net.
Peel your report and identify all issues requiring attention. Y-he-has errors? Or you realize that you do not always pay your cards on time? Are you in default? Or your file is pretty good, the situation is not as bad as you think. The goal is to know what you face. This exercise is one of the steps that will allow you to build a plan to rectify the situation.
Day 2: Go through everything you need
Credit cards, lines of credit, loans (car or other) mortgage ... anything that can represent your liability. Do not leave anything out, even the interest-free loans, you really want to get the real situation. Develop an action plan, a list of priorities as to what debt should be repaid first. You can not pay all at once, but you must have a plan. Again depending on the results you got on your credit report, several choices facing you:
Repay the loan that causes more harm to your credit (the one you tend to ignore perhaps, and you have made your reputation destroyed);
Repay the highest amount;
Or refund the one where the interest rate is the highest.
Note that the key word here is "Pay"; -) You decide which would be the best according to the situation in which you would be more comfortable.
Day 3: Go through your cash outflows
For this I suggest you read the post I wrote about it, How to know where your money goes? Simple and practical method. This article explains how to track all spending over a month. Once you have identified your expenditure, you should be able to notice soon enough that some of them do not make sense given your situation. We all have our pet peeves, some are just bigger in some than in others. You may buy your lunch every day or very often; or you snack between meals, bank fees are very high, your car consumes a lot ... No question of self-flagellation, the purpose of this exercise is to understand where your money goes. If you take the time it takes this step you will invariably be able to identify one or more superfluous or too high expenditure items that may help you free up funds ... funds that will go directly towards paying off your debt.
Day 4: Confirm your incoming money and look for ways to increase this amount
As you go about tracking your cash out now browse all your income. If you are like me and like most people, this exercise should be much simpler and faster ... Tell you that you will come to release more money from your usual consumption flows, the faster your debt will become that a bad memory. Or sooner you will be able to put money aside. Also, if you come to the conclusion that your income is too low compared to the amount of debt you need refund, it will consider supplement your purposes.
There are several ways to generate additional funds. In fact there are as many ways as your imagination allows. This may involve the most obvious way to look like a side job, ask for a pay rise, sell its surplus inventory (which also has the advantage of freeing your living space), turn his hobby into income ... All of course depends on your personal situation but do not ignore this option. Spend some time to determine what you can do to supplement your purposes.
Day 5: Set your goals
Yes, I am a fervent advocate of setting goals for the simple and good reason that this method works if you want to get real results! I was not still miss this opportunity to speak; -) Since Day 1 you have a good idea of your vis-à-vis behavior of your money, you know how much you owe and to whom, and how much your debt is costing you (financially and vis-à-vis potential lenders as well) . You also know where your money goes, and how much your income go up all sources. You have enough information to determine realistically how to regain control of your finances, and you must have an effective way to track your results.
Follow the SMART method, nosed approach that will help you in this exercise. Be sure to be specific, but realistic, based on facts and not on what you would like to accomplish. For example, you might set goals: "Pay my loan of $ 6,000 in 6 months" and "Establish an emergency fund of six months' salary in one year." You must ensure that the sum of your goals (and not individual objective independently) be feasible in the time available. Also, be sure to proceed with relatively short step, say a maximum of one year maturity.
Day 6: Determine the "How"
You now have all the facts in hand. You have determined the extent of the situation and set realistic goals to get away. It is relatively easy to determine the goals you want to achieve, but when it comes to take action exercise is certainly more complicated. We must now determine how you will go about it, and produce a realistic recovery plan. I recommend you use the method of "jars" or "jars" advocated by Gail Vaz-Oxlade. This is the simplest, most down-to-earth and most efficient in time. Gail's blog is also a source of inspiration if you speak English. Unfortunately, the videos of his shows, available on the Canadian site that I mention in my post, is not accessible by users who do not reside in North America ...
Day 7: Go to the act
The week has certainly not been easy. You have achieved a great way since Day 1 and you should feel relieved and happy because now you have a plan and you are given the means to succeed. You should already much better sleep at night! It takes courage to go through his personal finances, especially if one has dragged a situation that was becoming more and more urgent. 7 days, it is not so long, and the rest will not be either if you maintain your motivation. You are on the right track and you can be proud of. The sooner you start the faster you will be free so go, go service, the future is yours! The main thing is to act.
If the plan you are interested and want to give you a chance by putting it in place but have questions, please contact me and I will be happy to answer you. In particular, I intend to write more detail about Gail jars method because it is well worth investigating.
Give new, either in establishing your goals or to share your results! -)
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