New Year's Goals in a Recession

Jobs are being lost by the thousands. Businesses are closing every day with more on the edge of collapse. As a country watches and worries the money continues to drop in value. We are changing our plans and sometimes our future through no fault of our own. What happened? The world has been slapped hard with a financial reality check.

Because of the financial change we are going to have to adjust our goals for the new year. As a country and as individuals our lives will never be the same, but we can still live the best we can with a change in expectations and visions of the future. Many people will still make their new year goals, but now they are serious, worried and much more practical. If you haven't made a list of goals yet you may want to consider the following as a guide to your own future.

1. Money. It's going, going, gone. You are going to learn to live on less and to live without. So a budget is your first goal. Make a list of all you want or would like in the next year. Now review the list and start marking of items you know will cost money you don't have. This will help you to begin the process of not wishing for what was instead of looking forward to what you can accomplish. Set you financial goals for a savings of a certain amount each month. Do not waiver from the goal if it can be helped. You will need this savings at some point in the near future such as car repairs or a replacement car for the one being repossessed or a place to live when the home you paid too much for is finally lost.

2. Live on less. Now you are going to choose a different lifestyle and adjust to living within the new means and enjoying it. List all your bills. List rent, mortgage payments, car payments, credit cards and even down to a cable bills and luxuries you allow yourself. Now go through the list with a sharp pen and keen eye for change. If you rent or mortgage is too high and you are going to lose your home start now figuring out what you can afford. When you find a price range you are comfortable in then cut it by a third again. This will put you in a realistic range of the truth. Do away with all luxuries including cable, nails, hair, gyms, movies and anything else you do not need to live.

3. If you are paying a car payment and it's more than you can afford then you are going to have to make a decision. Lose the car back to the bank, sale it and refinance at a lower rate if possible. Most of the time the car will go back to the dealer or you will have to sale it. Resale of a car right now is not easy because everyone else is just as broke as you are so don't expect to make a profit. Get an older car and learn to work on it yourself. You may not like it, but this is now the life you are going to have to live for a few years.

4. Credit cards are next. Get rid of them! If you have large balances on them then expect the interest to increase with the falling economy. It's businesses trying to keep from failing. When you call them to whine and cry about how hard a time you are having paying for all your credit cards, just remember you are likely talking to someone who might have just lost their home so they really don't care if you got yourself in debt with too many credit cards. Most of the time credit cards contain pleasure items. Look at your bill and see what you don't need to live. Trips to the store to buy clothes, electronics, movies, dinners and just about anything else that isn't food for your home, light and heat to survive and a roof over your head. Stop charging! Pay your payments for more than the minimum and grow up.

5. Your family will be your largest concern. You will have to learn to live on less. No outside activities you can not pay for upfront. No more living off the credit card. Your family will have to make decision regarding entertainment, clothing and travel. Be honest with everyone about cutting back and creating a better life with less. Don't scare everyone, but they need to know the money is no longer flowing from your finger tips to theirs. It will take everyone to help with cut backs and life changes. You need to make decisions together so you bond stronger to each other. This is the time you will need each other the most and the love from a good support systems. If you work together then no one has to feel they are letting the rest of the family down. No guilt in a recession. You find solutions and make the best life you can.