Getting Started

[Chett]

Please forgive the length of this post, in the future the posts will be much shorter, there is a lot of information here to get you started.

Welcome to this challenge. You are about to begin what will feel like at times an uphill run. You have begun many endevors in the past, but this one will be different. This time you will have resources you need to be successful and a community of people encouraging you through this process. What is on the other side is potentially life changing. You will finish empowered financially and physically. If you have struggled with fitness or finances in the past forget it. Absolutely believe you are capable of reaching your goals. The first step in your preparation is to get in the right mind set.

What do you need to do get started? First become a member here on this site. The encouragment and accountability you will receive here will help you stay on track to reaching your goals.

For the run portion of the 5k
-Find a 5K race in your local area. Click here to find a race using the Runner's World race finder, or you can Google search for 5k runs in your area. Try to find a race that is at least four months away, to give you plenty of time to train. Next find a training guide for a 5K. Here is a pretty good 3 month training schedule that begins with limited running and works its' way up over the course of 12 weeks. Another good training plan can be found at http://www.coolrunning.com/. This is a similar process I used to train for my first marathon. The cost of entering most 5Ks is very inexpensive, usually $20 or less. Ensure you have a good pair of running, or walking shoes, then come back to this site and let us know where you have registered and the date of your run. After you finish finding a race come back to the site regularly to look for training tips and guidelines to help you prepare for the big day.

As for the other 5K
-Pay off $5000 in debt, or save $5000 in an emergency fund. If you're like most people you probably think the run portion of this 5K5K will be the easy part. Most people want to get in better shape because our physical condition is obvious to everyone around us. Money is different altogether. The funny thing is many people will spend more money and go deeper in debt to appear to be in better shape financially, it is an unfortunate irony.
You need to approach this portion the same way you approach training for the run, with small steps, walking before you run, and understanding accomplishing this goal does not occur in a few days anymore than being prepared to run a 5K can occur in a short amount of time. Follow the same program I used and before you know it you will be on the other side of your debt wondering why you waited so long to take control of your finances.
Getting started can be overwhelming but it is really a matter of getting organized. Once you have a plan you will begin to feel encouraged by knowing you have the ability to control your financial destiny. In the next few paragraphs I may use a word that will scare you…………..budget. Once you put together a budget it will be like your fitness journal. You will return to it again and again checking your financial fitness and using it to gage how you are getting in shape.

Step One. Get organized. List your debts (total payoff amounts) smallest to largest. If you have a vehicle debt of $20,000, student loans $14,000, major credit card $8,000, and one department store card with $2000 dollars and another with $700, list them in the order above. The smallest amount of outstanding debt is the one that you need to focus on first working your way up. List everything you owe money on in which you make a monthly payment starting with the smallest debt. Don’t start yet there’s something you have to do first.

Step Two. Get ready for a rainy day. Like it or not life will happen. In fact, that is how many people get into debt in the first place. It seemed life was going along okay and an unexpected major expense hit you and you had to go further in debt to survive. You must set aside a rainy day fund for emergencies. This is not an “I just saw a new electronic gadget that I gotta have” fund. It is to cover unexpected expenses that could set you back as you are getting financially fit. How much do you need in the fund?
It depends on what your largest out of pocket expense could be. For most people it is between $1000-$2000. You may be asking where you are going to come up with the money if you are financing your milk on any given week. This is where you test how serious you are. You either start selling “stuff” or temporarily increase your income. “Stuff can be hard to let go, but remember that is what gets many people into debt in the first place. It is very important that you complete this step. If you attempt to pay down debt without having a rainy day fund in place you will most likely encounter a set back and resolve to use credit cards again to bail you out. Once you have your rainy day fund ready you can begin pushing through your workout and start pressing through your debt.

Step Three. Begin paying off your smallest debt first. Don’t worry about interest rates on your loans, unless you have two debts that are close to the same amount, in that case pay off the one with the larger interest rate first. Otherwise, stick with paying off the smallest debts first and making the minimum monthly payments on the others. Why the smallest ones first? When you started getting in shape how often did you step on the scale or look in the mirror to see the results of your hard work? Most likely every day, or at least once a week. You need to see the results of changing your financial diet. Once you pay off that first debt you will realize that this is really possible. Here is the best part. Once you pay off a monthly obligation you have some extra money lying around. Take that new found money and start throwing it at the next debt up on your list. Before you were paying $40 per month on a debt that was never going away, now you are paying $80 a month and you realize you could knock this debt out in the next five months. When you pay off the second debt you now are paying $120 a month on a minimum payment of $60! This process is known as "snowballing debt" and it is empowering and once you start making progress it will almost feel as though you are running down hill. I will discuss more on this process in some later posts.
Like running there will be some resistance at first, some soreness and resentment due to the change of lifestyle, but if you stick with the program in the long run the payoff is worth it.

Now get started. Find a race, get a training plan, list your debts from smallest to largest and begin applying any of your extra income towards the smallest debt, and save $1000 in an emergency fund. Look for the next post for more information on getting started on your fitness and financial goals.

[PlanetPerspectives]

I am really excited about putting together the 5k5k idea. On my blog, I wrote a post about how saving money is a lot like losing weight, and I still believe it. I like how you have so well integrated the two, with lofty goals for someone like me! But I'll take the challenge head-on, because it fits nicely with some of my goals for 2009.

[Chett]

I just read your blog post, great job. We all have to keep in mind that it doesn't stop with the honeymoon stage that we have to keep our end goals in mind and stay focused on the habits and behaviors that move us closer to our goals. Again welcome to our site. We are glad to have you.

[PlanetPerspectives]

Chett - How do I access the calendar to post the 5K I want to do? Thanks!

[Chett]

Sorry, I guess I should have something specific that discusses the "how to" of adding an event.

Click on the events tab at the top of the screen. There will be a link with a "+" sign that says "add event," click on that.

Fill in as much of the information as possible. There is an option to attach an image for the event. Try to find the logo for the 5k and use it if possible, if not then use any image you think would be appropriate. But, you must attach an image to post and event. (Sorry I didn't create this program I wish is was optional.

That should be it. Let me know if you have any questions or problems with submitting an event.

[Lucia Serrate]

Thanks a lot Chett, this is really encouraging!

[Natasha]

I started doing my own version of this two years ago and managed to run a 5k and cut my debts substantially, but then I got busy and stopped running and then my hours got cut at my job and I can't maintain my previous level of payments. So here I am -- starting to jog again and taking baby steps to build my rainy day fund back up and continue paying my debt (I'm down to $6000).