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a no-brainer. But you might decide that you’re going to put a principal prepayment of $6,000 against your mortgage every year. That means you’ll have to set aside $500 a month in your budget. Have that money auto-debited to your Mortgage Prepayment Savings Account and you’re on your way. Make the annual prepayment and you owe yourself a treat!
    When it comes to saving, there may be several pools that you’re trying to build at once: the Travel pool, the Essential Emergency Expenses pool, the Blow Off the Job pool, the Educational Savings pool. Setting milestones for each of your objectives lets you feel a sense of accomplishment as you progress toward your goals. While having $12,600 saved for an emergency may seem like an unattainable goal, having $400 saved by the end of the summer may feel much more doable. Once you hit your first milestone, you set another, aiming to have $1,000 by the end of the year. And so you go, hitting your mark and moving toward the final goal step by step.
    When it comes to setting milestones for your long-term savings, you can do it either based on an actual dollar amount—as in, this year I’ll save $100 a month, next year I’ll save $200—or you can base your savings on a percentage of your income—this year I’ll save 10%, next year 12%, and so on. Your ultimate goal should be to contribute the maximum amount to your retirement plan that you are allowed by law. It may take several years to work up to the limit, so setting milestones along the way will help keep you motivated toward your goal.
    Create any number of milestones to keep you focused and feeling great about your accomplishments. The smaller the steps, the more successful you’ll feel. Pretty soon you’ll be so focused on the final outcome because you’re so used to being successful that instant gratification will pale in comparison to achieving the Big Goal.
    Perhaps the biggest goal you can set for yourself is to change your attitude toward how you deal with your money. Decide that you’re not going to feel bad, overwhelmed, stupid, stressed, or anything else negative about your money anymore. Instead, you’re going to do something about it—no matter how small those steps—so you can achieve your own sense of financial peace. Close your eyes, take a deep breath, and repeat after me: “I am more than what my financial life says about me. I can have anything I want, if I am prepared to work hard. Today I want to….” Go ahead, fill in the blank.
FOCUS ON WHAT YOU
REALLY
WANT
    You probably know people who believe that using credit is “normal,” that it’s what they should be doing. After all, their parents did it, their brother is doing it, so is their best friend. In fact, most of the people they know are doing it.
    It’s as if people are afraid to just be. They have to drive the right car, go on an annual cruise, have new leather furniture, watch a high-definition television, eat out three or four times a week, drink the best Scotch, or consume premium store-bought coffee every day. And they’re willing to exchange hours, days, months, years of peace of mind for the momentary high that comes with the new acquisition.
    One way to gain some perspective is to ask yourself (and your partner) what it is you really want in life. If you only had six months left on this sweet earth, what would you want to be doing? Would you be shopping for new furniture? Would the kind of car you drive really make a difference? How about the handbag you’re carrying?
    I often talk to my daughter, Alex, about how important it is to live a worthwhile life: a life that brings challenge and love; a life that allows you to share, to laugh, and to be happy. So, what are the things that make your life worthwhile? And what are you doing to put more of the things that make you happy into your life?
    If you love your life (as opposed to your stuff), relish the time you spend working, look forward to seeing the people you share your