So you’ve got a debt? What’s the first step in getting rid of it? Let’s take a look at one of my hot-button items in our budget [1] and work through it. In the fall we decided not to sell my car [2] just yet. However, now that spring is almost here it’s time to do something about it. Here’s my first steps:
Commit to the change.That’s the biggest step. Making a commitment to yourself by stating a goal. Based on our 2008 goals [3] we’ve committed to making a reduction in our budget. One of the big leakage areas of our budget is my car. So here it is… We’re going to sell my car in 2008.
Plan. After stating the goal it’s time to start doing some planning. Most goals are executed more efficiently with a solid plan in place. We’ve started our car planning working on the following items:
- Figuring out what makes sense financially in our budget; how much do we want to save with a replacement car?
- Revisiting my list of criteria [2] in a replacement car and determining if each item on my list is really a need or a want.
- Determining the order of events: Should we buy the replacement car first or sell the old car first?
Research. Once we have some of the planning in place, it’s time to research which car fits my newly improved criteria at the price we want to pay. This phase will take some time as I want to be sure that we’re getting a car based on our needs rather than a car a fall in love with. This is a very different approach for me with vehicles, so it’s not going to be an easy task.
Put the plan into action. If you’re a frequent reader at My Dollar Plan, you’ve probably noticed by now that many of my articles include Action Plans to execute my planning. All the planning in the world comes to a halt if you don’t create action steps to implement your new plan. Here’s my action steps for my car plan:
- Complete planning phase determining financial criteria and needs.
- Complete research phase to identify car that fits criteria and needs.
- Sell the car!
Stay tuned as I document each phase of our search for a new car!
Next up: What is your favorite family car? [4]