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Post a CommentI’ve been talking to a lot of people around my neighborhood and many are concerned about their finances in this economy. They are worried that they might lose their job (if they haven’t already, I have to buddies who were laid off in the last month, one was an engineer, the other in I.T.), getting an emergency fund up, paying down their high interest debt, plus a dozen other things.
They are stressing themselves out worrying, but they are not getting anything done. It’s all for nothing. Focus on one one, maybe two goals for a bit. It will reduce your stress and you’ll have a better chance accomplishing your goals. 
Remember: “Action is Better than Perfection“. Try to go ahead and pick one thing to actually do to improve your finances.
What to Do For Some Common Financial Goals
Here’s the essence of personal finance problems that many people encounter.
- If you’re in debt, find out how bad it is. Are you $500 in debt or $5000? The amount determines your basic game plan. Try to come up idea to raise money to eliminate debt. Use a debt snowball to get out of credit card debt.
- If you’re low on savings, start an emergency fund. Set aside $500 aside for when bad things happen, because they do.
- If you don’t your retirement fund started, then get started today. Put something away consistently every paycheck. Even if it’s $50/month at first, sock some money away for your future.
- If you want to maximize your finances, read as much as you can about your options. If you still want more help, contact a fee-based personal finance advisor.
Personal finance can be as complicated as you want or it can be much easier if you want to. Take it step by step: automate your savings, set up free and automatic bill pay, and set aside some money for retirement.
You can also tweak and improve your finances, but getting started is the biggest thing to do. You’re more likely to achieve your goal if you focus on one thing and decrease the stress in your life.
What is your first priority with your finances? How are your doing with your financial goals so far?
Photo Credit: shanti
This post was included in the Carnival of Personal Finance.
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My first priority is my property. I can loss my job or my investment, but with a roof, I can start all over again without fear of being homeless.
Nice tips. It’s amazing how much stress can be taken off your shoulders when it comes down to building an emergency fund and it’s sad that not too many people do it.
With a lot of overwhelming challenges in life, sometimes the toughest step to take is the first one. One of the best things you can do is just take a step back, take a deep breath, and figure out your plan of attack. Take the first step and begin to topple the wall in front of you.
Wow, that was deep…
I have started to hear that having savings for 8-12 months is more needed now then ever, what are your thoughts on this?
You mention if you are low in money, to start an EF. I would think it would be the other way. To me, savings would come first, and an EF second. Usually people who start an EF tend to already have a savings going, something they are not touching to keep for the future. With an EF, it’s more of a safety net. If you don’t have any savings, I would consider just combining savings/EF together, because at that point, they are one and the same.
[...] Panda Finances says that if your finances are a mess – then get started on just one thing. Great advice – better to concentrate and be [...]
@Rendell: Having a roof over your head is important.
@Tom and Grant: It’s tough to get started, but it’s important.
@Craig: Some people sock away a little bit for savings, but never really grow it. Labeling it for a specific use, an emergency fund, can help motivate them to be serious about saving for unexpected problems.
@tom: If you have a family and/or have some debt, I’d play it safe. If you’re single and have no major debt, I think you can go with less.
A little late to the discussion, but when I was an RA in school, the resident director always told us, “Motion creates emotion.” Whether or not you want to do something, sometimes the best thing to do is get started. I think Nike might have been onto something with, “Just Do It”
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