New Year Resolutions: Finances 2011

Posted on by Forest in Budgeting, Debt, Entertainment, General, Opinion, Saving Money & Finances

New Year Resolutions: Finances 2011, thoughts, ideas and more…..

A few days now and the new year will have been rung in, the holiday spirit will be a blur and the cold hard fact that it is 2011 will be staring us all in the face. This cold hard fact is something I welcome though and I am looking forward to powering through next year.

Although I have been writing about Frugality and saving money for a few years now my finances have been in a big mess but 2010 was the year I started to get my stuff together and really sort myself out. I got my debt into a debt management plan early in the year, kept up reglar payments, started my first emergency fund of $1000 a’la Dave Ramsey advice and built up my monthly earnings with my online business. For these reasons I cannot wait to see where I go in 2011.

New Year Resolutions: Finances 2011, where am I going

Although there is a certain amount of blindness along any journey the one I am taking in 2011 has one goal. I have around $38,000 of debt hanging over my head. Realistically on my debt management plan I should be able to settle with all my creditors for a total of about $25,500 or so (according to my debt management company). I have 12 months to collect that cash so that makes $2,125 that I need to stuff away per month on average to clear this mess and make 2012 a debt free year.

$2,125 per month saved towards debt! Can it be done?

Some months of 2010 I have not even earned that amount so this is going to be a tall order. Realistically I may be shooting too high and as advice to readers I would probably tell them to cut back their expectations just a little. But I need to aim high this year, this debt has been hanging on me for too many years.

Things that could stop my goal….

I make my money online, I work hard and long hours but it is still a home business with no fixed salary. Some months just don’t go well and it’s almost out of your hands. I am working hard to diversify income but it is hard work (that I love).

My partner finishes her masters in June and it is possible we will have to move away from Egypt. No idea where yet but any move and relocation / resettlement costs large amounts of money and it could really put a jam in the plan!

Some of my creditors may decide to get off the plan and start charging interest on my debts. They are at perfect legal right to do this if they so please and I can only contest it. Also I am planning on settling with 2/3rds of the money I owe. If everyone decides not to accept settlements then I may need to save some more and pay in full (which I would understand if I did have to!).

Other finances….

When in debt it makes perfect sense to put most of your focus on debt itself however there is a life outside of debt. I will be going back to the desert and maybe seeing a few other Egyptian tourist sites before I leave but will do it on a budget. I also need to grow any emergency funds and make sure they are in place to help me if I fall down for any reason.

Life is good and I live within a budget I feel is fair. I have been overspending a little with my weekend sailing but a camping option has just popped up which will mean I can camp for $8 per night as opposed to $40 (which did include dinner and breakfast) I was paying for a hotel on most weekends.

New Year Resolutions: Finances 2011, your plans….

Please let me know what your financial plans and goals are for 2011. Do you have debt to clear, savings to max out or something you want to buy? If you have a post about it let me know and i’ll post the link here.

Happy New Year and good luck.

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Tags: 2011 finances, debt 2011, my finances 2011, new years money, pay off debt 2011

11 Responses to “New Year Resolutions: Finances 2011”

BeatingTheIndex

29. Dec, 2010

Good luck with closing the debt, I believe it will be possible through consistent efforts in saving this amount monthly. It is having the discipline that makes it hard but well worth it in the end if you succeed.

You’re welcome back to Montreal if you ever decide to come here
BeatingTheIndex recently posted..China interest rate hikes- profit opportunities in 2011

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- Forest
  
  30. Dec, 2010
  
  Thanks BeatingTheIndex, I will be trying hard. Due to delayed payments I already know I can save almost nothing in Jan (maybe $300) but can put away a whopping $5000 in Feb…. So the year should start right.
  
  Thanks, will let you know when I next swing by for a visit.
  
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Buck

30. Dec, 2010

Way to stick to your guns and good luck with paying down your debt next year. Egypt seems like a beautiful place. Might have to visit it one day. Working on my resolutions and plan for next year.
Buck recently posted..Debt- Choose Your Battles

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- Forest
  
  30. Dec, 2010
  
  Thanks Buck. Egypt is an amazing place beautiful and ugly all at the same time and def worth a visit!
  
  Good luck on the plan….
  
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Briana Ford

31. Dec, 2010

I have $5000 in credit card debt and $6000 personal loan debt. I’m in the process of moving to a cheaper place, which will reduce my bills, and diversifying my income to help pay off that debt. I need to build up my emergency fund also. Every time I get it going, it gets wiped out with emergencies. Good luck to you!
Briana Ford recently posted..10 Things I Learned in 2010

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- Forest
  
  01. Jan, 2011
  
  Hey Briana, looks like it’s quite simple for you. Guess as they are so close in size it’s worth focusing all effort on the one with highest interest.
  
  At least those emergency $$$ have been there for the emergencies, I would get that back up right away.
  
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Kay Lynn@BucksomeBoomer

01. Jan, 2011

Good luck with your goal! My goal is almost the same amount and a stretch as well.

I hope we can both celebrate being debt-free next New Year’s Eve.

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- Forest
  
  01. Jan, 2011
  
  Hey Kay Lynn, a lot of us seem to be in the $2k club….. Fingers crossed we call all celebrate debt free 2012.
  
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Sylvia

02. Jan, 2011

Excellent! Yes, I’m on the pay-down-debt path with the added benefit of improving my credit score.

Hooray! Happy New Year!

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- Forest
  
  02. Jan, 2011
  
  Thanks for commenting Sylvia and best of luck!
  
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TOP FINANCIAL NEW YEAR'S RESOLUTIONS 2011 - December 30, 2010
[...] shared my financial resolution in this post “New Year Resolutions: Finances 2011“. Basically I really want to get out of my huge debt and it will take an estimated $2150 of [...]