self employed

For Americans who are floundering in debt, getting a grip on finances is a prime concern in 2008. While you may feel as though you’ll always be saddled with money woes, you really can dig yourself out of debt. You must resolve to make a plan and you must resolve to stick to it—you’ve got to stay tough and stay focused.

Here are five steps you can take to regain control of your finances and get back on track in 2008:

1.      Assess your situation. Make an honest assessment of your current finances. Determine how much money you’re forking out each month. Don’t forget to include expenses such as medications, school lunches and dry cleaning.

2.      Decide where you want to be financially. Setting goals will help you focus. Decide what expenses you can realistically cut (daily mocha lattes, take out dinners, etc) to help create your action plan or roadmap for reaching your goal.

3.      Pay yourself first. If you have direct deposit, set aside a certain percentage from each check that will be funneled directly to a savings account. If you don’t have the money in your hands first, you won’t miss it so much. You must be diligent about allowing your savings to grow.

4.      Explore your re-financing options. If you’re house poor, re-financing a problematic loan could help ease your financial pain. Check out the government’s FHASecure loan program and other re-fi programs for homeowners who’ve been sucker-punched by ‘creative’ financing that’s taken an ugly turn. Make sure you truly understand the terms of ANY loan you sign.

5.      Learn to manage the money you have now. Money management is the most critical factor in building wealth; learn to manage the money you have now regardless of the amount. HBM

Steve Williams, is a self-made millionaire, success coach and spokesperson for the Success Institute of America. He is a highly sought after lecturer/instructor who teaches management, marketing and entrepreneurship for many college and government programs. Visit www.incometoday.net for more information about Steve Williams.