Desire vs Decision

"If you greatly desire something, have the guts to stake everything on obtaining it." -Brendan Francis

Taking control of your personal finance seems like the "status quo" topic of today. The current economic situation has spawned more advertisements about "improving your credit; stopping foreclosure; and getting out of debt" than I have ever noticed before. While even going to pick up my car from the service department this weekend, I had a conversation with the receptionist about the extreme behavior some people are doing because of the high price of gas. Let's face it, we are currently going through some rough economic times.

Due to this economic situation, I have noticed that many people have been extra motivated with the desire to get their personal finances in order. I have constantly received questions about my ideas on the solutions to erase debt and get more income. However, I am finding that many people who want the solutions, do not want to give up their old habits. My personal definition of insanity is "doing the same thing but expecting different results". Now, although I am not trying to call anyone crazy, I do want to make the point that the desire to have financial freedom is not enough.

Although the desire to want to change your situaiton is a necessary step, the decision to change it is key. Once you have made up in your mind that you have decided to take control of your finances, there is an immediate change that takes place. All of a sudden, when you get ready to spend your money while eating out, you may find yourself saying "I could make this at home for way cheaper". You may even ask yourself "if I spend this dollar now, what is the amount I miss out on if I let this same dollar compound interest for 20 years". It is even a possibility that you start a second job to earn extra money to eliminate your debt so you do not throw away any unnecessary money in interest from your debt.

So now that you have made the decision to change your current financial situation, what is the next step? Below are some of my recommendations to build momentum to continue your change:

1. Start Now
• Procrastination may be one of the largest causes of why negative financial situations never change. Honestly, there is no better time than now for change. "Why put off tomorrow, what you can do today"?
  
2. Educate yourself
• Educating yourself about sound finance principles may be one of the best methods for changing your financial situation. I find that if people knew bettter, they would do better. Engulf yourself in knowledge from books, blogs, shows from the experts as well as conversations with those who have experience (good and bad) in regards to personal finances.
  
3. Create a Budget
• A budget is a necessity in taking control of your finances. As listed in previous articles, it is the foundation in any plan to obtain your financial goals. "If you fail to plan, you plan to fail".
  
4. Save 10% of your income in a high-yield savings account
   
• Many people get caught up in the best "investment" choice for saving their money. Unfortunately, some of us get caught up in the stock market and find ourselves losing money due to not exactly knowing what we are doing. Start investing slowly by just saving 10% of your income in a high-yield savings account. It may seem like an insignificant investment at first, but over time, the magic of compounding interest will show its significance.
  
5. Help Someone Else
• As written in the previous article "Personal Finance is a Team Sport". Although I am not promoting sharing all of your personal finance information with everyone, I do encourage that you work to help someone take control of their personal finances. You will find that as you help others, your knowledge increases as well as you are further inspired to stick to your plan.
  

The desire alone is not enough to take control of your personal finances. A decision has to be made to advance on your progress to obtain your financial goals.

Are you ready to make that decision?

Stay Disciplined!