baby steps

"A goal without a plan is just a dream."    - Dave Ramsey

I shared why I still make resolutions in January.  Although I do tend to love to make goals, actually accomplishing them is another story.  My plan this year is to make specific baby steps, or smaller goals that lead to the overall vision I have for the year.  The steps must lead to peace, although I know that the journey will contain stress and sacrifice, and hopefully not too much anxiety.  The goal to financial peace is worth it and I need to keep that foremost in my mind.

So here are my goals for financial peace in 2012 and written underneath are some baby steps I have identified that (hopefully) will help accomplish these goals.

1. I would like to open a savings account, and have money in that account.

a) Go to the Superstore with Tim, by February 15th (mid-month, random day). Discuss which kind of free savings account to open and make the plunge.

b) Work toward having $500 in that fund.  Any extra money each month will go toward the fund, as well as all of my teaching piano money.  (Hope to have reached this goal by May 31, 2012.)

c) Don't touch the money, unless it is a real emergency!

2. I would like to make a significant dent on our debt this year.
    
a) Create of list of all of our current debt, interest rates and minimum payments. 
   
b) Once the savings fund is complete, start by paying back our smallest debt first. This is regardless of interest rate, and called the debt snowball. The debt snowball basically means that you pay off the smallest debt you have first, regardless of the interest rate. You still make minimum payments on all other debt.  When your smallest debt is paid you take the money you were using for that debt and throw is all onto the next largest debt amount.  That way, you build intensity as you go.  (I may switch around the rules a bit and pay off my personal Mastercard first.  It has an incredibly high interest rate, far more than our student line of credits and student loans.) 
   
3. I would like to complete the "Financial Peace University" course.

a) There are 13 lessons in the course, and I would like to work through one lesson every two weeks.  This means making time to do this and do to the coursework.  I would like to listen to the first lesson (again) on Sunday February 5th, which would mean that we would complete it by July 31st 2012.  (That gives me a buffer week as well.)  

b) Each lesson includes reading from "Financial Peace Revisited" by Dave Ramsey and homework such as creating budget worksheets etc.  I hope to work together with Tim on this and touch base every Sunday evening on our finances and how we are doing with homework.


4. In order to work on all of the above, I need to create and stick to a budget!
     
a) We will work through this with the course above.  In the first week the homework is to create a mini-budget.  

b) By April 1st I would like to evaluate whether we need an online tool to help track our finances.  That may be My Total Money Makeover, YNAB, Mint or Pear Budget.

Financial peace.  That is my dream!  My dream is to live debt free (including house) and know that it took a lot of sacrifice to get there... but we got there.  My dream is to not see hundreds upon hundreds of dollars every month going to debt and interest.   My dream is to be able to tell others who feel like they can't even talk about it, because it is just too hard... to tell them that it IS possible.

I love Bari Tessler Linden's approach to think about your money story, re-name some of those budget categories that you dislike, eating a little chocolate, and body check-ins.  I had access to her Introductory Video Course when it was first released (for free) and I still think about some of her concepts and ideas.  She approaches things from a financial therapy perspective and has a wonderful, gentle tone. 

Here we go!  I have no idea how long this journey will take, perhaps years?  If you are in a difficult financial situation, take comfort and know you are not alone.  Muster the courage to look (by Bari) and begin to take baby steps to change.

Why I still make resolutions

I always made resolutions.  In my childhood/adolescent years, I would get a large sheet of paper, and write out every goal I could think of in order to improve my life, my health, my academics, my relationship with God... I was full of good intentions!  Of course, I would always fail.  This is the reason many scoff at resolution makers, knowing full well that they will be broken.

However, I still feel the desire to create goals for 2012.  Goals with a plan to accomplish them or at least head in that general direction.  Without some plan of action, there are some areas of my life that feel drastically out of control and scary.  This is why I must have goals.  This leads me to the theme of my resolutions this year....

financial peace.

My heart is in my throat writing those to words because they seem so opposite in my brain, thinking of finances usually causes my heart to beat fast, anxiety to rear it's ugly head and the stress levels to rise so fast I become defensive.  It's not a pretty scene!  In the spirit of keeping an honest blog, I would like to share some of our financial struggle and how we plan to take baby steps to get control of this area.

I've always been inspired by Simple Mom's new Year's Eve Reflection questions, and her Goal Setting questions. I also loved the post Resolve Not To which was helpful in thinking that no, I cannot do it all, and yes, I do need to focus on the things which are most important this year.

This year, I would like to work on these goals:

1. I would like to open a savings account, and have money in that account.
2. I would like to make a significant dent on our debt this year. 
3. I would like to complete the "Financial Peace University" course.
    (I actually won the audio course from a blog giveaway!)
4. In order to work on all of the above, I need to create and stick to a budget!

In other areas, I am going to work on our family health through menu planning and attending the Whole Food Kitchen online workshop.  I think that reorganizing our pantry and kitchen will help save money too!

Peace.

Peace is my word for 2012.  Peace... because I need it!  I want to be able to breathe when I analyze our finances.  Peace and not overwhelming guilt.  Peace knowing that our schooling contributed to this debt and that all of that was not in vain.  Peace accepting my role of being the best stay at home mama I can and appreciating that I can do this, while making sacrifices along the way.


"If we have no peace, it is because we have forgotten that we belong to each other."
-Mother Teresa

I am grateful for the people in my life, the belonging I experience, and I'm hoping that the act of being mindful and aware in life (and in finances) will contribute to a depth of peace this year.


Considering it is almost the end of January... I think it's never too late to create goals!  What are your goals and/or word for the year?