"Resolutions, Get Out of Debt"

In This Week

by Amy Spencer, December 29, 2010

Christmas is over and it's time to make a fresh start as we ring in the New Year. It's easy to make resolutions, but not so easy to know exactly how to carry them out and stick to them when the going gets tough. We spoke with a fitness coach, a financial expert, a registered dietitian, an electronic cigarette distributor and a life coach to find out how we should break down our grand plans into realistic lifestyle changes that will help us to a happier, healthier 2011.

(By Autumn Thatcher // In This Week) Amber Holmes is the president and founder of Smart Money Club, a local organization that teaches individuals the who, what and why of financial freedom. Smart Money Club meets on a regular basis and brings in guest speakers who have earned millions due to their ability to be smart with their money. Holmes gives advice for those of us looking to get out of debt in the New Year.

What advice do you have for people who want to better manage their finances in the coming year?

People who say they don't have money usually are not tracking where it's going. My best advice is to start looking at where unnecessary spending is occurring in your budget and think of ways to avoid it. Instead of hitting up Starbucks, drink free coffee at the office. It's not the big things you change in your spending that make the difference; it's the daily little things that count.

How does one avoid financial pitfalls?

People who say they don't have money usually are not tracking where it's going. My best advice is to start looking at where unnecessary spending is occurring in your budget and think of ways to avoid it. Instead of hitting up Starbucks, drink free coffee at the office. It's not the big things you change in your spending that make the difference; it's the daily little things that count.

What is the best way to become debt free?

The best way to avoid financial pitfalls is to use credit as little as possible. Credit has only been around since the '50s. But nowadays, people act like it's a necessity and they justify it by the emergency excuse. Suddenly, that emergency becomes a plasma TV or a trip to Vegas. And then it just snowballs from there. It really comes down to spending less than you earn and saving everything you don't spend.

How can someone become educated on proper financing, budgeting and saving?

Proper financing would come from educating yourself on what type of loans are out there and what the difference is with each type. The best way to start educating yourself about how to budget would be to use one of the budget programs available on the Internet such as mint.com. As far as savings go, there are so many different ways to start saving, but the objective is to put your money somewhere where it is gaining a lot of interest.

The best way to become financially educated is to take control of your knowledge. You can't just sit passively and expect your finances to change. Our consumer debt is greater than our national debt and we're starving for solutions. It's like we are all playing catch-up and we're sucking at it. I believe that we would not be in the financial distress as a nation if everyone had financial literacy taught to them growing up.

Where can locals go to learn more about proper budgeting, getting out of debt, etc.?

You can start by going tothesmartmoneyclub.com to look for upcoming events. Or search on the internet for groups who meet to talk about personal finance. Also you can try to contact individuals such as local bankers or stockbrokers to answer your questions.

What are some misconceptions that people have about getting out of debt?

People think that once they have paid off a credit card or paid off their debt entirely, that they can just relax and spend like they want to. That's not the case. Once you have paid off a credit card or account, you should really look at closing the card down. Unless you have complete control over your spending habits, you need to remove temptation to keep spending.

Why should someone learn proper money management skills?

I think once people realize that their "wants" have gotten them into debt and perhaps made them miserable, then you can make changes to better your finances, your happiness and your life.

What is your New Year resolution for 2011?

To continue my studies at Harvard via their extension program and to build the Smart Money Club into a major corporation.