Happy New Year! I can hardly believe it’s another year. A fresh clean slate ahead of us. I wonder how many dramatic resolutions and promises have been made. Over the past few years I’ve learned that for me personally its better not make extreme resolutions or set impossible goals. Better to focus on some big pictures things that I want to work on over the course of the year and a few achievable goals.

Last year marked some pretty big events in my life so for 2006 the theme is “consolidation”. Continue integrating the events and learnings from last year and understand the changes they have made on me.

In terms of finances I have a couple of very simple goals to work towards –
Quit smoking which will save several hundred dollars a month.
Making coffee at home in the morning rather than grabbing a Starbucks on the way to work.
Taking lunch to work a couple of days a week and saving the minimum $10 a day that goes to take out.

Not startling life altering decisions (except for the smoking) but things that I know are possible and will in fact make a difference on the disposable side of my income. When Nancy first got me tracking my expenses I was amazed to discover how much money I fritter away on little things without realizing it. Five dollars here. Ten dollars there. It’s amazing how quickly it adds up to a tidy little sum that could be invested elsewhere or go towards a major purchase that will make a noticeable difference in my life. The little purchases are not missed – I barely remembered them five minutes after consuming them. The money it frees up is astonishing.

What are your thoughts about your life and finances as you move forward into a new year? Be gentle on yourself and take small steps in the right direction. And remember – it’s not all or nothing. Allow yourself some breathing room. I’m not trying for never buying lunch again. Just not everyday.

Happy New Year!