Fix your finances for the New Year

January 10, 2011 9:54:05 AM PST
If you're like most people, you may be feeling some ''holiday hangover'' after overindulging a bit with December credit cards, gifts, travel and New Year's festivities.

Landmark Education Seminar Leader, Deborah Beroset has developed what she calls the "3 Cs Recipe" to soothe your credit card hangover. Even those with little or no debt can use this recipe for long-term financial health to meet other financial goals.



1) Clarity (Facts versus Story)

  • Write down financial facts
  • Reframe financial 'fiction'
  • Think like a business and cut expenses
  • If you're like most people, what you call facts are actually stories or interpretations about the facts. Most people collapse their own conclusions with what's actually true. For example a financial fact is: I owe $50,000. A financial story is. "I'll never in my lifetime be able to pay this off," or "I'm stupid with money." So it's important to separate fact from fiction. So, write down everything you owe. Then separate the facts from stories you've made up. Remember, your interpretations of the financial facts are not necessarily true and regardless, they get you in trouble by limiting what you consider possible.

    2) Commitment

  • Be inspired
  • Create a project
  • Post a picture
  • Once you are clear about what is actually fact versus fiction regarding your financial situation, you can then ask yourself the question, "What is it I am really committed to?" Is it paying off a portion of your debt by the end of the year? Is it paying off ALL your credit card debt? Maybe you want to start saving money? Create a commitment that turns you on, inspires you and would be something you could win THIS year

    3) Calendar

  • Plan for success.
  • Schedule money milestones
  • Use auto-pay/auto-reminders
  • This is the step of the recipe most people skip and then fail. Once you've got clarity about the facts and your commitment is front and center, it's important to take the right actions at the right time. Wishing does not make it reality. Only one thing will alter your situation - ACTION. Go to your calendar and literally schedule the specific actions you will do AND by when you will do them. Just as you need reminders in your kitchen when to do something, you need memory joggers for your finances so use those auto bill payers and those smart phone calendars. Or just place stickers on an old fashioned paper calendar. This way every month you'll be prompted to take the actions that will have you succeed. For example, if you want to pay off your credit card by December, are you meeting your monthly milestones at making that happen. Or even, put in your calendar a specific month and date you will have cut your total expenses. Another credit card tip: pay off high interest first as opposed to high balance. It's best to first pay your minimum on all cards and then with whatever extra you have in your budget target the card(s) with the highest interest rate first. Be sure to schedule your minimum payments with auto-pay and auto-reminders so you're sure to stay on top of payments. Then, schedule extra payments to the high interest rate cards.

    For upcoming an "Money Seminar," visit