The Beatles were right too: "Money can’t buy you love." You can’t pay someone a million dollars to love you more than a million dollars. Money can’t buy integrity or friendship either. You can often purchase a cheap imitation of these values but not the genuine article.

But money can be used to clarify and encourage the things already most important to you. It can be used to show your love for someone, keep your integrity or help a friend in need.

So, here is a simple exercise which can help you determine what you value most in life: Look at this list of 15 values:

    Achievement
    Adventure
    Aesthetics and culture
    Authority/Power
    Financial security
    Friendship/Love
    Health
    Independence
    Integrity
    Philanthropy
    Recreation
    Service
    Spiritual growth
    Wisdom
    Work

Cross off 10, and keep the five most important to you. Then rank those five in order of importance. Look at your list and answer this question: Are you living your life and using your money in sync with your values? If you are married, ask your spouse to do the same exercise independently, and then compare your answers.

Now, take these values and give a hard look at where you are spending your money. Does it fit?

Surveys have found that people regret what they didn’t do more often than what they did.
Our lives can change course dramatically (and serendipitously) all because of some small decision on our part. How many times have we heard the story of how a happily married couple met, only to be surprised it almost didn’t happen?

And, often, these decisions are expressed through how we spend our money.

We each long to participate in something significant and realize our greater passions. But that doesn’t just "happen"! It requires foresight, planning and forgoing our momentary desires. The choices we make, every day, determine the ones we will have the opportunity to make in the future. Without those hesitant, often stumbling first steps, we can’t even begin the journey. And, of course, the first step is the hardest.

Voicing what we are passionate about can be scary. Beginning to act on our ideas can feel overwhelming. But courage isn’t a lack of fear; it’s action in spite of fear. And our fear may indicate we are on the quest of our lives.

So again — I refer you to your list of values, held up against how you are currently spending your money: Are there small changes you can make–which would translate into BIG, passionate goals? Going through this exercise may not result in a dramatic career change, but it will help you see ways to align your actions to your goals.

And that, my friend, WILL bring you true happiness.

Which, as you may know, is one of the greatest casualties that people experience in the midst of debt loads.

So, here are the things we advise our clients and friends to do first … I’m focusing on credit card debt here, as it’s the most common form, but the same principles apply with other creditors.

1. If you ever hope to pay off your credit card debt, pay more than the minimum payment each month.
If you only pay the minimum payment each month, your bill could continue to INCREASE, even if you completely stop using your card. This is called "negative amortization"–where you think you are paying on your debt but the additional fees and finance charges are more than the minimum payment. The bottom line is: Pay more than your minimum or you will eventually be in debt over your head.  

2. Implement a regular *system* for credit card debt reduction.
With online banking and automatic payment options, there are GREAT tools for ensuring you don’t mess up because of administrative chaos. If you feel you can’t manage all your bills by pen and paper, there are several good software programs available for keeping track of your financial records. 

3. You can negotiate with your credit card company.
No, you do not need to be an attorney or other professional to negotiate with your credit card company (you will need patience and persistency though). The rising amount of consumer debt in this country has made creditors realize that they need to be more understanding of their customers — if they hope to get any money back. If you file bankruptcy they are only going to get pennies on the dollar, so they are willing to make deals.

4. Write letters to each of your creditors acknowledging your debt and the situation, and tell each one when you can begin repayment.
Open communication always helps. Usually credit card companies get ignored and end up sending delinquent files to a collections agency. So they’ll actually appreciate your openness in contacting them and may be more understanding of your situation. Proactively dealing with your debt problem rather than hiding will not only help your financial problem but make you feel better about yourself.

5. Keep track of what you are able to pay each creditor every month.
If you are not able to pay the full amount of your credit each month, you still should still pay something to stay on top of it. You should work off a written budget so you know exactly where you stand. Some experts suggest that you divide your monthly debt budget by the percentage each bill makes of the total and pay that amount.

Here’s an example: If you owe a total of $1,000, and one credit card is $800 and the other is $200, and you only have $100 available to pay for that month… You should pay $80 on the $800 balance, and $20 on the $200 balance. This way you are reducing each debt by the same percentage.  

6. Don’t fall prey to intimidation tactics
No matter how forthcoming and honest you are, some creditors have been taught to be mean and downright nasty. Hang in there and don’t let this tactic intimidate you.

But there will be another generation of such men and women in the next few decades — and chances are, they will tread the same path as those who have come before.

So let’s look at Warren Buffett’s path as an example, shall we?

1) Start with a meat and potatoes small business — and be your own boss.
Buffett made his fortune by doing things his way, not by following the crowd. In high school, Buffett and a pal bought a pinball machine to put inside a barbershop. With the money they earned, they bought more machines until they had eight different shops running their machines. When they sold the venture, Buffett used the proceeds to buy stock and start another small business. By age 26, he’d become his own boss and amassed $174,000 — or $1.4 million in today’s money.

LESSON: Don’t fall for the temptations of a huge, immediate windfall business. Cut your teeth on the side, with something basic, reliable and small.

2) Mind the foxes who steal from the vineyard: small expenses.
In the famous book, The Millionaire Next Door, authors Stanley and Danko report that millionaires live well below their means. They budget, plan investments, and allocate their time, energy, and money into building wealth instead of displaying high social status.

Warren Buffett’s companies are known for watching out for small expenses. Exercising vigilance over every expense can make your profits and your paycheck go much further.

LESSON: The next time you spot a sale or online deal, check in with yourself to see if that $50 is better saved or invested than spent. It might seem like you’re spending a relatively small amount of money, but it all adds up.

3) Debt kills.
Warren Buffett advises his people to limit what they borrow. Living on credit cards and loans won’t make you rich. Buffett never borrowed a significant amount of money, not even for investments or mortgages.

The Millionaire Next Door reports that millionaires’ parents did not provide "economic outpatient care", and their own adult children are economically self-sufficient as well.

LESSON: If you do give your teenager a credit card, make sure to set firm limits and specify use ahead of time. If they abuse the privilege, they lose the card. Do the same for yourself.

4) Leap forward.
Very often those who supply the affluent become wealthy themselves.  In fact, one of the best ways to make money is to sell products or services to those who already have money. Many people don’t see these opportunities because they’re far too busy seeking money and security in the short term only.
   
Well, when Buffett began managing money in 1956 with $100,000 cobbled together from a handful of investors, he was dubbed an oddball. But he didn’t allow others’ opinions to keep him from leaping into a profitable venture. Over and above, I might add, others with greater private means.

Lastly, I will suggest this: Get professional advice on new ventures and ideas. We are here for far more than "just" tax planning. I and my team would love the opportunity to sit with you, and help you evaluate the direction of your financial life … and point you in a new direction, should it be necessary.