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My 2010 Financial Goals

fleurs // livelovesimple.com

I took off from work last week, the week between Christmas and New Year. It was quite possibly the smartest thing I have ever done. It was an absolutely necessary break from the confines of my “routine” and job. I feel more as though I took a month off than just a week. I have done so much, seen so much, loved so much, and learned so much.

I spent genuine, quality time with friends, family, and my boyfriend. I spent my time between New York City and my hometown in Northern New Jersey.

I am at a place of extreme clarity. My mind is clear & fluid. My goals are crisp, clean, ready to be accomplished. I am focused, determined, & ready.

I am going to work very hard this year to bring myself closer to financial freedom. I am going to continue building my blog (and my businesses) at a faster rate than ever. I will continue to work 40-50 hours per week at my job, but I will also hustle and devote between 3 – 5 hours+ per week strictly producing content.

As of today I have two remaining debts:

$24,892.40 – Student Loans
$1,085.22 – Credit Card

(My car loan doesn’t count because I will be able to sell it [and ultimately make a profit] when the time* comes.)

Here is the plan:

By December 12, 2010* I will have cut my debt almost in half. My student loan debt will be cut down to just under $14,000 and my remaining credit cards will be cut up.

I will finally be in a position where I do not feel completely overwhelmed by my debts. I can not wait for that day!

How am I going to get there?

It isn’t going to be easy! But I can and I will do it. I plan to:

a. Put $1,000 a month into savings (ING Direct, earning 1.3% APY) = $11,143 (after 11 months, Jan thru Dec).
b. I already have $1,000 cash in a CD earning 2.0 % APY which will be available to me on December 12, 2010 = $1,020.
c. That will bring my total debt down to $13,814.62!

There are some doubts and questions that plague my mind. For example, “How am I going to put $1,000 per month into savings when I currently only put in $300 per month?” “What if an emergency strikes?” “What if I falter?” etc. etc. I find it pretty pointless to focus on these questions. There are a million what-ifs that we can ask ourselves everyday — “What if I walk out into the street tomorrow and get hit by a bus?”

The most important thing to me is this: I am working toward living the life of my dreams. I am empowering myself to live the life of my dreams. Through my blog and my businesses I am empowering other people to live the lives of their dreams. Those things alone make all of the effort 100% worth it.

In addition to all of the things mentioned above, I have also started to sell my jewelry (vintage & handmade) on Etsy. I am planning to start selling my other belongings on Craigslist & possibly Ebay in the near future. I hope that the extra money will help me reach my goals faster.

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I am so excited to be sharing my goals with you all. I hope that my goals can help you to set out to create your own. Yes, my plan is ambitious but if you shoot for the moon, even if you miss you’ll be among the stars.

If you would like to help me along my journey feel free to use the donation button on the right side of the page!

So, what are your financial goals for 2010? Is there anything that I can do to help you reach them? Let me know in the comments!

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  • · · · ·

    My Journey to Financial Freedom | Part 2: The Climb

    Emergency Fund

    Three years ago, I was nearly $60,000 in debt. I had a Bachelor’s degree that didn’t appear to be worth its weight in salt and a job that couldn’t cover a fraction of my monthly bills. I was terrified.

    Today, I am closer to complete financial freedom than I ever dreamed possible. Last week, I paid off my last remaining credit card balance. This two-part post is a celebration of this incredible milestone in my journey.

    In part one, I explained how I got to that terrible place. In part two, I will explain how I’m getting out of it (and how you can do it, too).

    ————————————————————————

    1. Change the way you think about spending money. For most of my life, I believed that money was made to be spent. I believed that I *deserved* to spend every dollar that I earned on some material thing that would “make me happy.” I coveted material possessions—clothes, jewelry, electronics, cars. What I realize now is that money is not meant to be spent. You only need to earn enough money to survive. You should have enough money to buy only what you need. There is no need for excess.

    “You’re not your job. You’re not how much money you have in the bank. You’re not the car you drive. You’re not the contents of your wallet. You’re not your fuc*ing khakis.” (Fight Club)

    This shift in mindset is hard to adjust to at first. You may not like the reactions that you receive from people. Believe me, I’ve been called cheap a few times, but I pay no mind to it. I would choose cheap over poor any day.

    2. Keep a budget. I highly recommend using Mint.com. I started using it in September and it has been one of the most transformational and useful tools throughout my journey to financial freedom. It allows you to sync up all of your accounts (loans, checking, savings, etc.) in one place. Then it keeps track of every transaction that you make and sorts/organizes all of the data for you. It allows you to track your spending over time and by category. It gives you incredible perspective and insight about where your money goes each month/year. It has been a truly eye-opening experience for me.

    If you’re unwilling to try Mint, you can keep a budget on a spread sheet or even by hand. However, the important thing is to be completely conscious about where every dollar you spend is going.

    3. Use a debit card. To reap the full Mint.com experience you should use a debit card for every purchase you make. Using the debit card will automatically flag each transaction you make into the appropriate category. So if you go to Shoprite, it will get marked as groceries. If you go to Home Depot it will get marked as home. If you stop at the gas station it will get marked as automobile, and so on.

    I use my debit card (linked to my checking account) for almost every single transaction that I make. I also have all of my monthly bills (like my auto insurance, utilities, and gym membership) automatically debited from the same checking account each month. It makes keeping track of my spending that much easier. Plus, I do not like dealing with cash. The debit card is quick, easy, and is accepted almost everywhere now.

    Whether or not you use Mint.com it is a good idea to use a debit card simply because you can review all of your purchases and purchase amounts on your monthly statement. Trying to keep track of receipts is a hassle that I don’t have time for.

    4. Pay off credit cards and cut them up. Paying off my credit cards was my first priority. For awhile I tried “credit card surfing.” Let me just tell you from experience, it’s overrated and it really doesn’t work. The idea is that you surf from credit card to credit card by transferring balances. A lot of companies will give you 0% APR for 6 months if you transfer your balances over to them. After the 6 months, you “surf” to a new card with another promotional rate.

    The problem with this tactic is that it gets messy quickly, it becomes difficult to keep up with, and if you lose track you will end up getting burned by high APRs, finance fees, cancellation fees, etc. Also, it probably doesn’t look great on your credit report if you’re opening up a new card every 6 months or so.

    It is much safer and wiser to just stop using credit cards! My theory is simple and has taken me very far: If you can not afford to buy it, then you can not afford it. Period. It is simple logic.

    5. Eat in. This is one of the easiest changes to make, but it also comes with an enormous, positive impact. When I started closely tracking my spending habits, I was shocked to see how much I was spending on eating out. A meal at a decent restaurant goes for about $25 per person. If you eat out twice a week, that is $3,120 a year. If you grab lunch out during the work week, it’s about $8 a day. That’s $2,080 a year. Put those together and you could be spending $5,200 a year or more on dining out! That is outrageous and completely unnecessary.

    Since I started eating in and packing lunches, I’ve taken my monthly food spending from $500 down to $200 or less! Over time, that means enormous savings. Check out 5dollardinners.com for some awesome, inexpensive recipes. I love it! Also, investing in a crock pot was one of the wisest decisions I ever made—chili, sausage & peppers, and goulash will be your new (delicious, cheap) best friends. (Here are some more tips for eating healthy & mindfully.)

    6. Direct deposit money into savings every month. This is my final—and perhaps most important—tip. When I began my journey to financial freedom, I opened a savings account with ING Direct. It is an easy-to-use online savings account and it gives you interest on the money that you save. It also allows you to set up easy direct deposits.

    I started out small, depositing $50 a month into my savings. As I learned to keep my budget tighter and tighter, I increased the amount that I put into my savings each month. Currently, I am putting away $500+ per month and hope to get closer to $1,000 per month in the very near future.

    When you direct deposit the funds, it comes out automatically. It is painless because you don’t have to do a thing. Because it’s automatic, after awhile you don’t even notice that it’s missing. (I remember reading that on another blog several months ago and thinking, “Are you out of your mind?! I’m not going to miss it? Yea right!”) But I can honestly say that after a few months, you adjust to the missing money. You truly do not miss it once it becomes normal for that amount to be deposited into savings automatically each month.

    It has been one of the best decisions that I’ve made and because I’ve worked so hard to get to this place—I don’t touch that money! I am keeping it there for a rainy day or to pay off my student loans someday in one fell swoop.

    ————————————————————————

    As I stated at the start of this post, three years ago I was almost $60,000 in debt; I was twenty-three years old; and I was scared to death. Today, I have my finances under control! I am on the road to financial freedom and you can get here, too. Truly, it is not as hard as it seems. With common sense and a bit of dedication, it will happen. Paying off my last credit card balance was like taking chains off of my wrists for the first time in seven years. The feeling was completely priceless. If I can do it, anybody can.

    So, what are your financial goals? Have you ever been in financial prison? How did you free yourself? If you’re still there, what are you going to do to break free?

  • · · · ·

    Review: The Power of Now

    The Power of Now had been on my “to-read” list for years when, by a stroke of fate, a dear friend offered to lend me her audio copy. Based on my general understanding of the book and its content (prior to reading it) I felt that I would enjoy it; however, I was completely unprepared for the way that the book would speak to me, transform my perspective, and change my life.

    The Unreal Past & Future

    In The Power of Now, we learn that to live in the future or the past is to suffer. The only way to exist in true harmony is to live in the now. After all, the past is not real, the future is not real. The past and the future only exist in our minds.

    When I first heard this concept I refused to believe or comprehend it. Of course my past is real, I thought. Of course my future is real, too. How dare someone suggest that it is not? My ego lashed out; but then I thought more about it. I listened, opened my mind, and realized that it was true. I am going to ask you to walk through an exercise with me to help you understand.

    Let’s recall a memory in which you are eating something. Let’s say, for example, it’s a hot summer day and you’re licking an ice cream cone. Now, where ever you are—right now, present moment, not in the memory—I’d like you to stick your finger right into the ice cream and then throw it to the floor. Can you do that? Can you touch that ice cream cone from your memory? No, of course you can’t (unless you’re on hallucinogenics but that’s another story).

    The fact is that right now you can not touch that ice cream cone and therefore it is not real. It may seem real in your memory—in your mind—but it is not really “real”…not here, not now, not in existence. It is only a memory and it only exists in your mind.

    This principle is also true for the future. Imagine any future scenario in your mind. You win the lottery. You get fired from your job. You purchase a house. You fall off of a cliff. You can play each of those scenes out in your head. You can fill in as much detail as you like. You can mentally experience the future, but the truth remains that the future scenario isn’t “real”. You can’t actually reach out and touch anything in the future right now. The future only exists in your mind.

    When I finally grasped this concept I was shocked & amazed. It seems simple, but somehow I had been missing it for my entire life! To me, the past and the future were as real as the present. The past happened to me. The future was going to happen to me. I held on to these concepts for dear life. But then I realized the truth… the past and the present are not that important. They’re not even real. They are only in my head.

    You might be feeling a bit angry right now. (I know because I was at this point.) You might be thinking, How dare you claim that my past is not real? I’ve suffered, I’ve lived, I’ve triumphed, I’ve done X, Y, and Z. And my future, that is real too! I am going to do things 1, 2, 3, and so on!

    Your Ego Feeds on the Past & Future

    Well, my friend, I am not sorry to break it to you. That voice of anger is fueled by fear and the fear is coming from your ego.

    For your entire life, your ego has been calling the shots. He rules you by fear—fear over your past and fear over your future. So long as you believe in the reality of your past and your future, your ego has control over you. It uses every thing that ever happened in the past against you. It uses everything that you hope to happen in the future against you.

    There is only one way to overcome your ego and that is to live completely in the now. Let go of the past and the future. Be fully present in this moment.

    It is not easy. You’ve spent your entire life ruled by your ego, living in the past and present. But while it’s not easy, it is possible. It’s entirely possible for you to begin living entirely in the present moment, entirely in peace, love, & light, entirely free from the chains of your ego.

    The Power of Now is an excellent book and if you truly listen to every word and practice its teachings in your daily life, you will succeed. It has been quite a journey for me already and I’ve only been on it for a few weeks now! I am experiencing life in ways that I never dreamed possible. You can do it, too.

    *********

    Here are some of my favourite pieces from The Power of Now along with my interpretations of each.

    You have it already. You just can’t feel it because your mind is making too much noise.
    Eckhart Tolle tells us that that many people ask him to “give” them his gift. His response is always the same, You already have it.

    This is entirely true. Each of us already has the immense power of now within. Tolle nor anyone else can “give” that to us—but what he can do (and does in the book) is to show you how to harness the power in your own life.

    Not to be able to stop thinking is a dreadful affliction; but we don’t realize it because almost everyone is suffering from it. So, it is considered normal.
    After reading (listening to) The Power of Now, I realized that yes, the modern human being is suffering from a debilitating disease: compulsive over thinking.

    It is so obvious to me now! How many millions of people are suffering from anxiety, depression, and so on? Most of these individuals are suffering as such simply because of compulsive over thinking.

    When we stop our compulsive, ego-driven thoughts, we live in harmony. Sadly, however, most people just don’t know how to stop those thoughts.

    We must become the silent observer, as Tolle describes in the book. The first step to overcoming the compulsive thoughts is to recognize them, to be the silent observer of your mind.

    To see, but not see. To hear, but not hear.
    Have you ever had a moment, an hour, or a day where you were entirely mindless?

    For example, you are driving along the road completely spaced out from reality and suddenly you “wake up” and you don’t know where your head has been for some stretch of time. You know that you must have been seeing and aware, because you didn’t crash your vehicle. But you weren’t really there. You were seeing but not seeing.

    Another example, you are in conversation with a friend or loved one and you begin zoning out. You hear words coming out of her mouth, but when she finally stops talking, you realize that you have no idea what she just said. You were listening, but you weren’t really there. You were hearing but not hearing.

    This is what it means to see, but not see; to hear, but not hear. It is living life in an unconscious state, on autopilot. Most likely you are daydreaming about the unreal past or future. You can overcome this state of nothingness and time wasting by harnessing the power of now and being fully present in each moment.

    Humanity is under great pressure to evolve because it is the only chance for the survival of our species.
    “Humanity is under great pressure to evolve because it is our only chance of survival as a race. This will affect every aspect of your life and close relationships in particular. Never before have relationships been as problematic and conflict ridden as they are now. As you may continue to pursue the goal of salvation through a relationship, you will be disillusioned again and again. But if you accept that the relationship is here to make you conscious instead of happy, then the relationship will offer you salvation, and you will be aligning yourself with the higher consciousness that wants to be born into this world. For those who hold to the old patterns, there will be increasing pain, violence, confusion, and madness.”

    *********

    I could write ten posts about The Power of Now and I would only begin to scratch the surface. The book is extremely intensive. Tolle’s language is thick and weighted with meaning. The content is formatted as question and answer for the sake of clarity—but it is still heavy reading. As I mentioned earlier, I listened to the audio book and I would highly recommend this format. I have heard that reading the text can be confusing and I can understand why.

    The audio book does span several hours, but it is entirely worth every moment. If you can not afford to buy the audio book, you should consider borrowing it from your local library.

    If you decide to read or have read this book, I would love to hear your thoughts. Whether or not you decide to, I hope that you will consider the ideas that I have shared in this post.

    Thinking about being somewhere else uses up your precious, present moments. Be here now. —Wayne Dyer

6 Comments

  1. Good Luck!!!

    Glad you are so focused on the goals you have established.

    Keep it up and don't ditch your time on your blog.

    David Damron
    LifeExcursion

  2. @David – Thank you so much, Dave. I am excited & I appreciate your encouragement, definitely no ditching the blog! 😉

  3. Dena,
    Good luck on your goals. I have to say that paying off college debt is a major undertaking and I'm on the same boat. We can do it!

  4. @Ken – Thanks so much! It is indeed a huge undertaking, but we will get there – one step at a time. 🙂

    @Laura – Thanks so much, glad you enjoyed. Stick around! I'm going to check out your blog now.

  5. Pingback: 5 Tips for Focusing & My Mini Meltdown : evolution you

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