How to change bad financial habits in 8 steps

Is Your New Year's Resolution To Become Financially Fit? Get your finances in order for 2011 starting now! You've made a resolution to diet, workout and get more physically fit, but what about your finances? Managing your debt? Saving money? Restoring your credit? Here are some tips for replacing unhealthy financial habits with sound new ones to achieve financial freedom in 2011: Track what and where you spend. Experts say many factors, including depression and anxiety, can set off bad habits, such as overspending. Keep a notebook of your spending behavior, including when and why a purchase was made. Sort out "wants" versus "needs". Do you really need that $5.00 cup of coffee every morning? Think first, act second. The longer you think about buying something, the more likely you are to save the money. Start with small, manageable goals when changing your financial lifestyle. Work on paying off one credit card at a time.

Change the way you think about your goals and keep a positive attitude. Instead of using the word "budget," use "spending plan." Plan ahead when shopping. Make a list and stick to it. Bring only enough cash to make your purchase to avoid overspending. Be sure to reward yourself for good behavior or a goal you achieved with a small, controlled indulgence. If you feel deprived, you're more likely to give up, experts say. Work through any setbacks. If you fall off the wagon, keep going. The first three months of a resolution are the toughest and have the highest risk period for going backward