News - Thrifty Living

POSTED: Tuesday, Jan. 06, 2009

Frugal Duchess: Goal-setting

Goal setting is an annual exercise as we try to whip our home and other fiscal assets into better shape. And so we crunch numbers and try to tone up our financial abs.

But like a new diet or workout resolutions, goal-setting efforts can be exercises in futility. That's because improper or poorly planned budgets can leave us feeling winded and strained. So I've spent some time trying to think about the shortfalls and possible solutions.

Here's my lists:

Failure to look back. We need to check in before pushing forward. How much was saved last year? Where did the money go? How did we waste money? What speed bumps and roadblocks appeared in the past 12 months? What home expenses are likely to appear in the future?

Ignoring weaknesses. I hate doing set-ups; I'm scared of free weights and I detest pushups. But if I want a jiggle-free body, those exercises must be included in the fitness program. With awareness, I spend extra time and effort working on fitness shortcomings and quirks. Likewise, financially I need to accurately assess spending weaknesses and find a plan that will address those sore spots.

Unrealistic targets.

Comparison tests.