THE 30 DAY FINANCIAL
FITNESS PLAN
Make extra cash. Pay off
debt. Take charge of your finances!
And we're not talking about fad diets or
get-rich-quick schemes. We're talking about setting yourself up financially. You
can curb spending, stop living paycheck to paycheck, start tackling mounting
debt, and prepare for your future -- all by taking just 10 minutes to one hour a
day to make a simple step toward fiscal fitness. The Money Coach's Guide to
Your First Million (McGraw-Hill, 2006), helped create this 30-day financial
fitness plan ... It will help you spring into action, stay motivated and develop
good habits ... We know that 30 days can impact the rest of your life!
Buy a house. Buy a new car. Retire young. Fire
your boss and start a business.
Dream big and write it down. Use these ideas as
your motivation to get financially fit.
Set Goals
1. Daydream. Think about your life at a point in the future when you have
complete financial freedom. What has changed? How have things improved for you
and your family? Write down all your financial goals in a notebook, and use
these ideas as your motivation throughout the month.
2. Spend one hour itemizing your expenses and
income. Include child care, gas, commuting, dry cleaning and eating out. Cut
back where you can. Visit
www.lowermybills.com to comparison-shop for deals on long-distance phone
service and 18 categories of household bills.
3. Face your debt. Visit
themoneycoach.net and click the free download "I Debticate Myself to Being
Debt-Free." Fill in the names of your creditors, the interest rates on your
cards, the balances and minimum required payments. Tally your debts and decide
which bills to pay first, such as high-interest credit cards.
4. Call your credit card company and negotiate a
lower interest rate. You'll save money on finance charges and get out of debt
faster. If you've been a good customer and the creditor won't budge, consider
switching providers. Go to
bankrate.com to surf for the best credit card offers based on interest
rates, annual fees and perks like frequent flier miles.
5. Check out your credit report and score. You're
entitled to one free credit report every 12 months at
annualcreditreport.com. Or you can visit
myfico.com to order your FICO credit scores for a fee. Look for any errors
and start improving any bad payment history. This score determines how much
interest you'll pay on future loans, so the higher, the better.
Lower Bills
6. Start paying yourself first. Set up an automatic savings account to create a
"hands off" emergency stash. Start small, depositing even just $25 from each
paycheck into a high-yield savings account, like those offered by
ingdirect.com and
hsbcdirect.com. Or you can open an investment account at
sharebuilder.com for a fee of $20 a month.
7. Limit impulse buying by using the "24-Hour
Rule" when shopping: When you feel the urge to buy those designer shoes or new
electronics, give yourself a full day to think about whether the item you wanted
to buy is a need or just a want.
8. Is your last bank statement buried under a
pile of mail? Get organized. Invest in management software such as Microsoft
Money 2006 or pick up an accordion-style file folder, label by month or
category, and sort bills accordingly. Create an easy-to-use filing system.
9. Lower your auto and homeowner's insurance
rates. Raise your deductible from $200 to $500, to shave 15 to 30 percent off
collision and comprehensive coverage. Put all of your insurance policies with
the same company, to save 5 to 15 percent. Investigate and compare new options
at
insweb.com.
10. Find "free" money, visit
missingmoney.com to determine in less than 30 seconds if you're owed
unclaimed funds in any state. Don't laugh. Twenty-six million Americans are the
rightful owners of billions of dollars worth of unclaimed property and money.
11. Reflect on these words: "You see things and
ask, 'Why?' But I dream things and ask 'Why not?'" --George Bernard Shaw
12. Give yourself an instant pay raise by
adjusting your W-4 withholding at work. A big tax refund means you gave Uncle
Sam an interest-free loan. Fill out a new W-4 form, and increase the number of
exemptions you claim. Check out
irs.gov to leam how.
13. Calculate your personal net worth. First add
up all your assets, such as savings and investments, and the value of any cars,
household property or real estate you own. Then subtract all your outstanding
debts ...
14. Get inspired by the life of Oseola McCarty.
she worked her entire life hand-washing and ironing other people's clothes for
between $1.50 and $10 a bundle. Yet, at age 87, she donated $150,000 to the
University of Southern Mississippi. If she can turn something small into
something great, so can you.
15. Reflect on these words: "I really don't think
life is about the 'I-could-have-beens.' Life is only about the 'I-tried-to-do.'
I don't mind the failure, but I can't imagine that I'd forgive myself if I
didn't try." --Nikki Giovanni Ask yourself, "What might I try with a new
financial outlook?"
16. Scale back on
unhealthy and expensive eating habits. Ending that Monday-through-Friday gourmet
coffee and doughnut run means you'll pocket about $100 or more monthly. Annual
savings: $1,200. Brown-bag your lunch, and stop those daily treks to the vending
machine to save another $900 a year.
Reward Yourself
17. Get smart about your mailing and postage expenses.
Pay your bills online through
mycheckfree.com to save time and reduce your postage costs. If you pay 10
bills a month electronically, you'll save about $47 a year on stamps. Every
little bit counts. And send e-cards to save even more.
18. Time to think about your golden years. Start
or jumpstart your contributions to your 401(k) retirement plan. For 2006, you
can put away up to $15,000 in a 401(k). Your employer may match your
contribution, which means free money. Learn more by visiting the Employee
Benefit Research Institute at
ebri.org.
19. Get out! Make plans with a friend to do
something fun that doesn't involve spending. Brainstorm and be creative. Some
ideas: Play charades or board games; visit a zoo or museum for free; watch a
Little League game, school play or a community theater production.
20. Reward yourself today with a luxurious bubble
bath, scented candles and some relaxing mood music. While you're soaking, think
of any skills or talents that you could turn into a money-earning side hustle.
Visit
essence.com for ideas on how to make money on the side.
21. Checkup time! Have you been cheating on your
spending diet? Still can't resist the expensive lattes and break-your-budget
shoes? Don't give up. Visualize yourself living a dream you thought of on Day
One, or call a fiscally responsible friend for a pep talk. Get refocused on your
goals and try again. You can do it!
22. Find money in your closet. If you have
lightly used wares that you don't like or that can't fit you anymore, sell them
at a consignment shop. Make sure everything is clean and in good repair; check
out the shop before you sign up. You can earn good money, depending on the type
of clothes and location of the shop.
Read
23. Don't let your electric bill make your summer even hotter. Before you flip
your air conditioner to full blast, replace the air filters. Cleaning a dirty
filter can save 5 percent of the energy used and shave up to 15 to 25 percent
off your electric bill each year. Simple steps like unplugging appliances when
they're hot in use help, too.
24. Draw up a will or update your old one to make
sure your assets and possessions end up where you want. An attorney can do a
basic will for $250 to $500. Creating a will online is even cheaper: $79 at
legalzoom.com and $19.95 at
buildawill.com. Get it notarized and signed by two witnesses.
25. Devote one hour to reading a personal finance
magazine or book. Pick up
Girl, Make Your Money Grow!(Harlem Moon, 2004) by Glinda Bridgforth, or
Lynnette Khalfani's
Zero Debt The Ultimate Guide to Financial Freedom (Advantage World Press,
2004). Go to the library or buy discounted books on budgeting and debt
management.
Learn
Have your credit reports arrived? Review them for any inaccuracies. Make a copy
of the report and circle any errors. Call the three main credit bureaus
[Equifax, (800) 525-6285; Experian, (8880) 397-3742; TransUnion, (8000)
680-7289] to formally dispute. Get supporting paperwork and send by certified
mail so you have proof of receipt.
27. Always getting hit with late fees on DVD and
video rentals? Pay a visit to your local library and borrow movies for free.
Think of other late fees you keep getting hit with, and make a promise and a
note in your diary to return or pay for items on time.
28. Refinancing isn't just for mortgages. Reduce
sky-high auto payments by refinancing. Visit
capitaloneauto.com to see if you qualify for a lower rate. The form is easy
and approval is fast. Potential savings: Capital One Auto Finance customers save
an average of $1,350 over the life of the loan.
29. Ask your doctor or pharmacist for generic
drugs. Fight rising costs by requesting the less expensive generic form of any
pills, liquids or injections you have to take. By law, generic drugs have the
same active ingredients as the brand names-without the heftier price tag.
30 Congratulations! How did you do? Pull out your
journal and tally up how much you've saved this month. Note what you learned to
live without, and commit to keep it up. Didn't finish? Create a simple to-do
list. If you get off track, regroup and approach each day as a chance to make a
change.
Source: Essence. Powered by Yellowbrix.
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