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If you re an American, chances are high that you also have debt. Most all of us do, in the form of credit cards (the average U.S. household with one or more credit cards has over $9,000 in credit card debt), mortgages, student loans, car loans, and so on. Some of this, of course, is good debt (things you need but can t afford upfront, like a home, education or a car), but much of it is not (bad debt is money spent on things you don t need, like a vacation to Tahiti or 200 pairs of designer shoes).
In fact, it s next to impossible to live without debt in America. Can you imagine paying cash for your child s college education? Still, many Americans are pushing the limit and spending more than ever before.
Savings are now at the lowest level since the Great Depression. The average personal savings rate in the United States in 2006 was not 10, 5, or even 1 percent it was negative 1 percent! This means that people are spending all they have, then spending some more by using up savings or increasing their borrowing.
The bottom line is that many Americans are looking to achieve some financial goals this year, from cutting down on credit card debt to increasing their retirement savings. However, simply saying I want to be wealthy,or I want to be out of debt is not enough to get you there, and here s why.
Why, and How, to Make Specific Financial Goals
If you want to make financial headway this year, absolutely stay away from vague financial goals. Why? Because general goals, whether financially related or otherwise, set you up for failure. For instance, simply getting out of debt is a goal that has no action plan and is completely overwhelming to even think about. On the other hand,paying off $500 of my credit card bills each month is something tangible, something realistic and something that you can work with.
Here is a breakdown of some vague financial goals and how to convert them into specific, achievable ones:
Vague: I want to save for retirement.
Specific: I am easily increasing the contribution to my 401K by 3 percent every month.
Vague: I want to stop spending so much.
Specific: I am only buying one new piece of clothing every two months.
Vague: I want to get out of credit card debt.
Specific: I am easily paying $200 of my credit card bill each month until it s paid off.
Vague: I want to start investing.
Specific: I allow myself to invest $500 in XYZ mutual fund and reassess it in three months.
Vague: I want to make more money.
Specific: I allow myself to easily receive a 5 percent raise from my employer.
Finally, if you are having trouble attaining even your specific, and realistic, financial goals, negative thoughts and emotions may be standing in your way. To find out more about how to release your negative thought patterns to achieve financial abundance, check out the scientifically proven Sedona Method.
In fact, it s next to impossible to live without debt in America. Can you imagine paying cash for your child s college education? Still, many Americans are pushing the limit and spending more than ever before.
Savings are now at the lowest level since the Great Depression. The average personal savings rate in the United States in 2006 was not 10, 5, or even 1 percent it was negative 1 percent! This means that people are spending all they have, then spending some more by using up savings or increasing their borrowing.
The bottom line is that many Americans are looking to achieve some financial goals this year, from cutting down on credit card debt to increasing their retirement savings. However, simply saying I want to be wealthy,or I want to be out of debt is not enough to get you there, and here s why.
Why, and How, to Make Specific Financial Goals
If you want to make financial headway this year, absolutely stay away from vague financial goals. Why? Because general goals, whether financially related or otherwise, set you up for failure. For instance, simply getting out of debt is a goal that has no action plan and is completely overwhelming to even think about. On the other hand,paying off $500 of my credit card bills each month is something tangible, something realistic and something that you can work with.
Here is a breakdown of some vague financial goals and how to convert them into specific, achievable ones:
Vague: I want to save for retirement.
Specific: I am easily increasing the contribution to my 401K by 3 percent every month.
Vague: I want to stop spending so much.
Specific: I am only buying one new piece of clothing every two months.
Vague: I want to get out of credit card debt.
Specific: I am easily paying $200 of my credit card bill each month until it s paid off.
Vague: I want to start investing.
Specific: I allow myself to invest $500 in XYZ mutual fund and reassess it in three months.
Vague: I want to make more money.
Specific: I allow myself to easily receive a 5 percent raise from my employer.
Finally, if you are having trouble attaining even your specific, and realistic, financial goals, negative thoughts and emotions may be standing in your way. To find out more about how to release your negative thought patterns to achieve financial abundance, check out the scientifically proven Sedona Method.