When it comes to getting out of debt, it is important to have a plan. Keep in mind that you’re going to need a short term plan as well as a long term plan to get out of debt, but in order to STAY out of debt over the long term, you’ll need to be proactive in your planning now and in the future..
In addition to monitoring your daily expenses as a starting point for your short term plan, you’ll also need to outline a long term plan to help keep you out of debt. You need to plan your budget with some goals that are SMART — specific, measurable, attainable, realistic and timely.
Being specific about your budget goals will give you a greater chance of accomplishing then a generalized goal. An example of a general goal would be: “Get out of credit card debt”. A more specific goal would be something like: “Pay off my high interest rewards credit card”. Next, a measurable goal helps you to establish criteria to measure your progress and keep you on track towards attaining that goal. An example of a measurable goal would be: “How much do I want to pay off and by when?” An attainable goal is really a measure of something that might be difficult to accomplish but with planning and effort is very much reachable. To be realistic, a goal must be an objective that you’re willing and able to work towards, and must be a goal that you believe you can attain. And finally, a timely goal attaches a time frame with which you can measure your progress, providing a sense of urgency that will push you toward completion.
The bottom line is that however you construct your plan, you have to be proactive about it. If you can’t force yourself to flesh out a detailed plan, start small by tackling your smallest credit card obligation first. The sense of accomplishment that you get from checking that first small goal off your list might provide some incentive and the motivation that you need to get you started on a more thorough plan of action. Whatever level of motivation that you haven’t doesn’t really matter. You can build momentum over time, if you’re feeling less than enthusiastic about what it will take. But your credit cards or any debt obligation that you might have will never get paid down if you don’t have some kind of plan, any plan.
Start small but aim to be SMART in your planning.
Related Posts:
- No Debt Plan – Best of the Best Blogger Series - The 32nd edition of our Best of the Best Blogger series features Kevin Mulligan from No Debt Plan. Kevin started No Debt...
- Paying Off Your Mortgage May Help You Eliminate Debt - It is possible to eliminate your debt problem, but it takes some serious discipline. The plan involves paying down debt in a...
- Paying Down Your Debt - If you feel like you are becoming overwhelmed by your credit card debt, you are not alone. In fact, the average American...
- Is Obama’s Jobs Plan Just More Spending with Pretty Wrapping Paper? - Forbes contributor Warren Meyer recently had an opportunity to read over Obama’s new jobs plan, and like many on the right, he...
{ 2 comments… read them below or add one }
I think Multiply that daily expense by 365 and you’ll be stunned at how much Starbucks is really costing you on a yearly basis.
In addition to monitoring your daily expenses as a starting point for your short term plan, you’ll also need to outline a long term plan to help keep you out of debt. You need to plan your budget with some goals that are SMART — specific, measurable, attainable, realistic and timely.
Being specific about your budget goals will give you a greater chance of accomplishing then a generalized goal. An example of a general goal would be: “Get out of credit card debt".