I'm going on a diet....a Financial Diet!

I want to travel the world, learn about new cultures, history and what the world has to give! In order for this to happen I NEED MONEY! I have been giving this a lot of thought, thinking that if I cut back on this or start saving more etc, money will start accumulating! WRONG! If I really want to save money, travel the world and enjoy its beauty I have to get FIT! FINANCIALLY FIT!

Just like everything else you work hard at you need a goal, a strategy and an execution plan! Five years ago I found myself weighing 142 lbs after my second year in college. This was an additional 22 lbs from the year I graduated high school. Refusing to accept this change in my life I went on a diet! More than a diet it was a mix between a good balance meal and lot of exercise! I was an athlete all my middle and high school years - being overweight and out of shape was not an option! 

I am now very satisfied with my weight and appearance. Through continual healthy life-styles I'm able to continue to hold my ideal weight! This is my optimum goal with my finances.  I consider myself a good ‘saver’ yet I am a very impulse buyer, if I like something and am able to purchase it I will do it- even if a year later it will end up in my garage sale bucket!

As I see myself closer to 30 in my timeline of life, I am beginning to think of ‘real’ necessities like buying a home, having enough in savings to move cities and of course travel the world! So after a few hours of brainstorming I have created a goal, a strategy and an execution plan for my financial diet!

Goal: Buy a home in March 2012

Strategy: Eliminate unnecessary purchases by creating realistic budgets and making smarter purchases.

Execution: My execution plan is simple; in order to make my strategy a success I will break it up into the 2 parts:  

1. Before making a purchase I will ask: ‘Do I NEED it? Or do I WANT it?’ If the answer is want it, than I don’t need it! If the answer is “need it”, the next question will be, ‘Is there a more cost effective alternative?’ 
2. Use mint.com to track my expenses, set budgets and goals.

Just like in a good weight-loss plan, you have to watch your calorie intake, find healthier yet satisfying alternatives and of course measure your success. I believe these 2 tactics will help me achieve my goal by March 2012!