33 Days

Day 21 of 33 Days And 33 Ways To Save Money And Reduce Debt: Focus

September 22, 2007

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Day 21: Focus

I believe in ‘goal creation’.  Over the past three years, I’ve created three personal finance goals.  I started this blog because I wanted to get out of debt.  After getting out of debt, I decided to build emergency fund.  Now I’m working to save 60% of my income in retirement and education savings.  So, what’s the ‘secret’?

Focus.

I create a goal and then I break that goal down into manageable micro-goals – and then I spend my days focusing on those micro-goals.

When I wanted to get out of debt, I put every extra dollar towards paying off the account with the lowest remaining balance.  Instead of splitting extra payments between various accounts, I focused on one account, and I bulldogged my way from account to account.

When I was saving for my emergency fund, I didn’t worry about “the goal” – I focused on my “micro-goals”.  If I wanted to save $20,000 in 8 months, that meant I had to save $2500 a month – which is $83 a day -and that means that everyday, every week, every month, I had to be ‘focused’ on finding ways to increase my income and decrease spending.  I had to make plans and execute.

Trust me, I know hundreds of people who have decided to ‘get out of debt’.  I only know a handful of people who have been successful in doing so.  After a month or so, it’s very, very easy to get discouraged and quit.  During my debt reduction process, I had to dip into my emergency fund THREE times – and I missed my goal date by more than FOUR months.  But, I remained focused.  I refused to give up or give in.  I made a decision to get out of debt – and I got out of debt.

It might take you five months to get out of debt, or five years, of twenty-five years.  But, I can absolutely assure you, no matter how long it takes, it is absolutely worth it.

Pep talk over!

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Leave a comment about the power of ‘goal creation’.

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