As co-founder of MoneyMinder (www.moneyminderonline.com ), I could go on and on about the virtues of tracking, or being able to do a simple monthly spending plan and know I’m okay. Yes! But what about pulling back and working on goals like debt reduction? Or building more savings? What is an easy way to do that?

In MoneyMinder, there is a simple net worth tab. I say “simple” because some people get very complicated when they think about net worth. However net worth is “simply” taking everything you owe and subtracting it from everything you own, and seeing the difference.

But there is an even easier way to jump into this subject. Don’t worry about your entire net worth right now. Really!

Simply use the net worth sheet to focus on your current debt and savings goals.  Or grab a blank piece of paper and do this–

At the top of a sheet, write down your savings goals: perhaps your current savings goal is to start a safety net so you know you are okay if don’t have any money coming in. (Look here for my article on creating a safety net. I call it a “Freedom Fund”. https://www.seattlemoneycoach.com/how-to-create-your-very-own-freedom-fund-yummy. ) And you want to put $100 into it each month and you want to watch it grow. So write down “Safety Net” or “Freedom Fund”. (I recommend setting up an automatic transfer to savings that is small and sustainable to get this going.) Then make a list of your current debts that you dislike- perhaps it is credit cards. Write out their names (and their interest rates next to their names if you want some great incentive.)  Don’t worry right now about big things like mortgages. And you may also want to wait on thinking about student loans.

Now you have a column with savings goals on top and debt goals on the bottom. Once a month, write down their new balances.

Each month, once a month, you simply update this sheet in a new column on the right side – you write in your new savings balances and you write in your new debt balances. You’ll have columns going across your page.  Check out the picture I made of what this could look like. (This picture is from MoneyMinder- the spending plan software I use with many clients.)

Seeing debt balances go down and savings go up feels sooo good. Over time you may fill in the other parts of your net worth. But for now, focus on your immediate goals. Make filling this out the first thing you do each month. You’ll immediately see if your debt balances went up, which is great for breaking denial and re-setting your intention. (Take your credit cards out of your wallet?)  And you’ll feel good seeing your savings go in the right direction.

Here is a tip: put a reminder in your smart phone on the 30^th of each month- “Grab current debt and savings balances”.  You can even put them in a simple note on your smart phone and when you have time, write them in your columns.

With some simple monthly updating, you can make a ton of progress on both your debt and your savings goals. It feels great!

Want more help transforming your relationship to money? Check out all the eBooks, audios, and more robust products Mikelann has created. Are you ready to break free of the “money fog” and step into earning what you are worth? Are you are ready to get in touch with your emotions so you never feel out of control around money again? Are you ready to love your financial life? Let Mikelann help you get there. Free items are at the top of the page.