Where did all that money go?

• Position: Consumer Debt

Your W-2 or 1099 has arrived. You tear off the perforated edge, pull out the center page, gape at the amount you made in 2005, and wonder: Where did it all go? It's not a fortune, you think, but it's enough that you should have a nice little chunk set aside in savings or investments rather than a hefty new car payment and an escalating credit card balance.

Do not feel too discouraged. The first step toward solving a problem is admitting you have one. Former financial counselor Eric Tyson, author of Mind over Money, says this is the perfect time of year to take stock of spending habits and make a change. "Many messages in our society--the proverbial Joneses--tell you that you must spend, spend, spend to project a successful image," Tyson points out. "Those who live consumer debtfree and within their means tend to coast below the radar. That's too bad. Those are the people we should emulate, not the ones who always have the latest gadgets, the trendiest wardrobes, and the most maxed-out credit cards."

If you want to atone for last year's financial sins and make a fresh start, you must change the way you think about spending. Tyson offers a few suggestions:

* Mental mistake number one: thinking consumer debt is the American way--everyone has it. The remedy: realizing you do not have to be like "everyone." We all know credit cards, with their astronomical interests rates, bleed us dry, prevent us from building a nest egg, and lead to untold stress and anxiety.

* Mental mistake number two: assuming you have to drive a shiny new car. The remedy: imagining how good it will feel not to shell out that $400 each month. Not only does Tyson think it is wise to keep your old, paid-for car, he does not believe in financing automobiles--at all. "I truly believe that people should save up enough...