Saturday, October 9, 2010

Saturday Cleanup

Growing up Saturday was a cleaning day. We would be given a list of chores to get done and on we went. For my parents Saturday was a financial cleanup day. They spent the day organizing and paying bills. Evaluating the budget and planning for the future. Here is a short list of activities that can be done on a Saturday to cleanup your finances.

1. Evaluate lifelong dreams and set written goals Are you living in your dream home? How is your retirement savings going? What debt do you have that needs to get paid off? What needs to be done to save for your dream home? How close are you to reaching those goals?
Write down a plan of things you can do in this order.

What can I do today to reach my goal?
What do I need to do this week?
What can I do this month?
Set a day to reevaluate the goals.

2. Make your road map to debt freedom. Take a good hard look at all of your debt, credit cards, student loans, car loans, mortgages, home equity loans and any other personal debt. Tighten up the budget and start paying off debt. Your income is your most powerful wealth building tool and right now its all tied up in debt. Check out the post on the Piggy Bank debt reduction plan for great tips on getting out of debt fast.

3. Develop or reevaluate the budget. Budgeting is never fun, however I think its is fun to find ways to save even more in a budget. Get creative about ways to save money. Most of us spend way to much on entertainment and eating out. Go on a eating out fast, and cut it out for the whole month. See how much extra money is left over. Plan a entire month of free or low cost weekend activities. (more on this to come in the next post)

4. Make some extra cash as you declutter the house. Take a look at what you are keeping in storage, and find out what you are not using. If the items have potential profit in them. List them on Ebay or a local classified page. Organize a garage sale with family or friends. Use the money earned in the areas you need it the most. Paying off debt, or building savings.

Saturdays are an important day of the week, its the day we get stuff done, play and spend time with the kids. Make the most of it.

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