Give Yourself a Money Makeover

Odd Cents - Give Yourself a Money Makeover

I was reading through an old Essence magazine and I came across an article written by Tamara E. Holmes that talked about giving yourself a money makeover. Makeovers are not just for changing the way you look. You can give yourself a money makeover and change the way you look at your finances. If you have a goal or a dream and you need money to get there, then you might benefit from this article.

  1. Admit that you have a problem – The sooner you realise that you’re in a financial mess, the sooner you can take corrective action. You can either try to solve the problem yourself or engage the services of a financial planner.
  2. Personalise your spending plan – This involves keeping track of where you spend you money and on what by making notes. From there you can list all of the necessities ( mortgage, car payment, food etc.)
  3. Use financial software – If you can’t quite do it on your own, companies like Spring Coin can help you to keep an eye on your finances.
  4. Dump the debt – Tacking debt should be based on a solid plan. One example given in the article was to start with one debt and try to pay it off quickly, whilst paying the minimum required on your other debts.
  5. Set short-term measurable goals – Achieving smaller goals gives you motivation to set other other goals and achieve those as well.
  6. Delay gratification – The article suggests putting off payments until you have the cash to pay for them. It’s silently telling you to ignore your credit card.
  7. Pay yourself – This means that you should set aside something for you. It’s like having a little guilt-free money to do whatever you want. It could be even treating yourself to an ice cream or a movie.
  8. Put your plan in writing – This allows you to reaffirm your intentions to stick to your plan. My budget is stored on flash drive, but I also keep a little post-it in my purse with a breakdown of my salary.
  9. Think income enhancement – This is empowering you to find ways to make more money. Educating yourself, finding a part-time job or starting your own business are great ways to increase your income.
  10. Make finances a family affair – This point is direct and to the point. It’s not “your” finances or “my” finances, but our finances.

One of the biggest problems that people encounter with getting their finances in order is their failure to understand that their problems can be fixed. Some problems might take a bit longer to solve, and might require professional help. The key is to admit that want to fix the problem and not be afraid to ask for help