Fix Your Finances

We know the routine already: millions of people wake up on New Year’s Day resolving to get their finances under control.  The fact is that most will do it the wrong way; they’ll go at it like a binge dieter, cutting tons of fat out of their spending early on, and then give up, and by March their credit cards are maxed out again.

The reason this happens has little to do with dollars and cents and more to do with careful thinking about your life’s goals and your feelings about money.  And your goals and feelings will have an even more drastic impact during tough economic times like these.  If you are willing to spend a little time everyday thinking or doing a little work on the calculator, you’ll position yourself for better prosperity when the economy turns around.

The real truth is that we live according to a set of values.  For some, the top value is family to provide them with opportunity to easily define their values.  Every person has a set of between four to six primary values.  Financial problems occur when they are distorted, and much of this distortion is done through advertising.

Define Your Values
The first step is to define exactly what our values are. We are not defining goals here! Goals are specific actions, like “retiring at age fifty five” or “paying for my son’s graduate school.” What we are looking for are values.  Friends.  Love.  Freedom.  Truth. What are the fundamental items that make you tick? At the end of this post is a list of a few potential values that one might list; you can look at these if you’re an example-oriented person.

To think clearly about your values, first, get calm and relaxed.  Second, be honest. No one has to see this list, so write down what really comes from inside of you.  Third, close your eyes and ask yourself what is really important in your life.  If nothing comes immediately, don’t worry about it. Think about the moments where you feel most whole and fulfilled and that feeling stays with you, not a temporary, passing feeling.
As you discover values, write them down.  Just make a list on a sheet of paper. It doesn’t have to be ranked in any way. Once you’ve discovered a value that’s important to you, just add it at the bottom of the list. You’ll know when you are done; don’t worry too much about how many you’ve written down.
Once you have this list, save it. We’ll not only refer to it in Part 2 of this Topic on Setting Up Your Goals, but it will probably be valuable to you.  See you next month!
If you need some help getting started, here is a list of thirty values that you might have in your life. Note that this isn’t a list of all possible values, just a selection of some values to help you get started.

Source: http://www.thesimpledollar.com/2007/01/01/31-days-to-fix-your-finances/