When I was in my twenties, I had the worst credit, and I didn’t know how to save money. I would spend and spend on anything that I wanted, and live paycheck-to-paycheck. It wasn’t until 2007 when I started getting serious about getting rid of my debt and start saving for short-term and long-term goals. I picked up a bunch of personal finance books and started reading away.

By 2008, I had paid of all of my debt, minus my student loan, and saved money to buy a place of my own. I did. I felt empowered and free. Living paycheck-to-paycheck, having tons of credit-card debt, and not having anything in savings is huge stress. Therefore, I was glad to have eliminated it.

I started following Dave Ramsey’s plan to financial freedom and it helped. Now I plan on following it again because I have some new short-term and long-term goals that I want to become a reality:

Short-Term Goals

• Go on three international trips
• Save $1,000 a month
• Increase my retirement contribution
• Make more money

Long-Term Goals

• Buy a bigger place in 2011
• Pay off student loan
• Have 3-6 months in emergency funds

Goals are the best way to ensure that you maintain on track. I love eating out, so I know that is something that I need to keep in check if I want to be able to succeed in making these goals a reality. Here is a great video from Dave Ramsey on how to set goals, especially when it comes to finances: