It’s that time of year again. That time when we all start thinking about how we’re about to embark on a new chapter, a new beginning – a New Year. And as such, it’s time to start making those resolutions that typically include things like losing weight and quitting smoking. Often, putting money into savings or paying off debt also make their way onto the Resolutions List as well. While that is always a good thing, author and life coach, Martha Beck, feels it’s important to break down that debt goal and focus on only one.
Beck, who’s also a columnist for O Magazine, says that it’s when goals are too large that people fail. Looking at the big picture is overwhelming and wanting to pay down the entire $100,000 you have on your 2nd mortgage may seem like an impossible task. And thinking something’s impossible could be the biggest block in someone achieving their goals, financial or others. Instead, says Beck, don’t only take baby steps towards the goal, but “turtle steps.” Do things towards that goal that will help you pay down that debt, and that you can do every single day. And, Beck is also a big believer in Post-It Notes, saying that if you can’t fit it on a Post-It, it’s too large a goal.
So instead of wanting to pay off your entire mortgage in one year, aim to save $15 a week towards prepayment of your mortgage; that will be $50 a month that you’re putting towards your mortgage. Even if you don’t pay it off this year, you’ll have much more saved towards your goal than if you had set an impossible goal for yourself and never even begun to tackle it simply because it was too large.
With more Canadians planning to save more and pay down more debt in the coming year, Ms. Beck’s adivce is certainly very timely. So forget about making resolutions to wipe out your debt completely in the coming year, or even wipe out a large chunk of your debt. Take one debt alone and if that’s too much, a portion of one of your debts, and make that your focus in 2012. When you ring in 2013, you can not only determine which debt, or portion of it, that you’ll focus on in the next coming year, you’ll also be able to toast yourself for the job well done, taking those turtle steps, and paying off at least one debt (or at least a good part of it!)”
