As we approach 2011, it is resolution time once again. It is natural that we wish for a better year than the last. If it comes to pass, it is a reassuring sign of development and growth. So if 2011 is your year and you are contemplating a change or a new start, here are the Aiki business coach’s top 7 resolution sliders to help you. Use them any way that works for you.
1. Snap out of your financial coma
If you want to turn your financial life around, firstly recognise that things are not perfect and that you really want to make a change. Sometimes it is hard to break out financially because you are held back socially by friends and family. So you may have to keep them all at arm’s length for a while.
2. Adjust your lifestyle and start saving
You need to start by setting a money goal here. Figure out a realistic amount you can save and a realistic time frame in which to save it. Reducing your personal debt is also a form of saving. Perhaps save to pay out a loan or credit card. You just have to trim your household budget and personal spending to suit.
3. Kill off that credit card debt
Almost 100% of people experiencing financial problems have significant credit card debt. You are not alone but you will be so much better off without it. Whilst folding money is not quite as available and convenient as your plastic card, it will re-introduce you to the real value of money and old fashioned concepts like ‘saving up to buy’.
4. Buy things that are likely to go up in value
Instead of watching your money disappear on lifestyle / feel good / self image purchases, try preserving your money in another form by purchasing ‘assets’ that typically go up in value. While real estate, shares and managed investments are some traditional investment assets, there are other options, such as gemstones, jewellery, artwork, old coins and stamps. Seek advice, but if it is something that you enjoy, you can have a hobby as well as boost your wealth.
5. Establish a second income source
There is no rule that says all your income must come from one source. In fact it is smart not to be reliant on just one source. Eggs should be spread further than just one basket. Sickness, accident or unemployment could be just around the corner. A second job is fine if necessary, but it is far better to secure a source of passive income, such as investment income or internet marketing income. That way you have free time and money in your life.
6. Maintain financial independence
Always retain your own identity and some level of financial independence when you are in a live-in relationship. It is reasonable to maintain your own separate bank account as well as a joint account with your partner. There are plenty of examples of people being left with nothing without warning after months of planning. Those caught out never saw it coming.
7. Success is a team effort
Week 1 of any resolution is easy while you have plenty of motivation and enthusiasm. However, week 2 is where it starts to slip away. So buddy up with a friend and keep each other focused on your goal respective goal journeys. You don’t have to be doing exactly the same thing. The purpose is encouragement, support and a little ‘talking-to’ when necessary.
My best wishes for a prosperous financial journey! We will resume our coaching journey together in 2011.
Happy New Year!
Your Aiki business coach