The Debt Adviser By Steve Bucci • Bankrate.com

10 tips for a debt-free 2003

1. Set financial goals
To move beyond instant gratification, I suggest setting goals. Set some short-term goals, such as "buy a dress" or "take a vacation." Set some for the long term, such as "buy a car" or "buy a house." Your goals will serve as the motivators needed to do the hard things you may have to do in the present.

2. Plan ahead
I'm not talking about some oppressively huge, lifelong plan. I mean a spending plan! We all like to spend, so I suggest you have a plan to do it so you get what you want, not what some slick marketer tells you. Write down what you spend your money on over the course of a month. Then write down all your sources of income. Try to make them balance and don't forget to set aside money for your long- and short-term goals. Not enough money for everything? You get to choose whether you increase income or shift spending. It's your plan and your life!

3. Get organized
Now that you have goals and a plan, keep track of things by using a computer program such as Quicken or Money, or a paper file system -- whichever works best for you. The best way to realize your goals and avoid financial difficulties is to know how much is coming in each month and how much you owe and to whom. Keep track of all bills, when each is due.

4. Save
Put some money into savings for your goals each pay period, no matter how small the amount. It might help you to think of your savings as another bill you have to pay. Include it in your stack of bills and write a check to your bank to be deposited in your savings account. A savings cushion of up to a year's expenses is important and should be one of your goals.

5. Get out of debt
Long-term debt makes sense for long-term purchases such as a home. But credit card debt for any length of time is for suckers. Pay down credit cards as soon as possible (But still don't forget to save something!).

6. Retirement
Decide when or if. Plug it into your goals and savings plan. You are on your way. Don't overdo it. You need to enjoy the journey to retirement.

7. Invest
This is sort of like saving but different. With saving, you put money aside. In investing, you make it work as hard as you do. Find a financial planner or broker you can trust who will take the time to understand what you want. Stick with him or her -- good ones are hard to find.

8. Insure
As they say, stuff happens. For the big stuff, you need insurance. If others rely on you, you need life insurance. Regardless, you need disability coverage. If you drive or own a car, you already know you need it because a big problem can wipe out all you have worked for. Also it's what responsible adults do to take care of themselves.

9. Protect your money
Now that you have some money and a future, watch out for those who will try to separate you from it. Well-meaning friends, relatives and even scam artists may have other plans for your money. Tell them, "No! Get your own plan!"

10. Enjoy yourself
Congratulations! You've done all the hard stuff; now relax and enjoy it. You have goals, a plan to get there and some cash. Don't forget to loosen up as things improve (and they usually do for people who have No. 1 through No. 9 in place) and enjoy the day, the people in your life and all the blessings you have been given. Have a great new year. See you debt-free in 2003!