Posted by Mike Smith :: June 25, 2008 @ 7:00 am

As the saying goes, time flies when you’re having fun. That a year has already passed since I began blogging for Lending Club speaks to the enjoyment I have gotten from the effort. I’ve covered a wide array of topics, from debt consolidation to predatory lending, consumer protection to financial philosophy, retirement planning to the housing crisis and many subjects in between. This year has greatly expanded my knowledge of personal finance and I hope that it has done the same for you.

Looking back, the most surprising thing that I’ve learned is that the actions required to improve your financial situation are quite simple. Why, then, aren’t more people better off now then they were a year ago? The reason largely has to do with the mindset of the people in question. Knowing what to do and actually doing it is a subtle difference, but hugely important.

Unless we take action and use the tools at our disposal, things aren’t likely to improve. Here are a few example scenarios with simple solutions:

1. Do you have a lot of high interest credit card debt? Then consolidate that debt with a P2P loan.
2. Are you living beyond your means? Then start tracking your finances to figure out where the money is going.
3. Are you unable to save any money? Then make savings a priority.

These are just a few examples, but they highlight a trend common to most financial troubles. Not one of those ideas is difficult to understand, but implementation often gets in the way. We make excuses rather than take action. As a result, our situation remains the same or gets worse.

Making improvements in our personal finances is difficult, but not for the reasons we might expect. Until we decide that improvement is worth the small sacrifices necessary to achieve it, we won’t reach our goals. Even in cases where no sacrifices are required, we often allow our fears to hinder our actions.

You have the power to make a change, so long as you can convince yourself to take the necessary steps. Thanks for a great year!