How to Finally Take Control of Your Finances

How to Finally Take Control of Your Finances

Managing finances is a matter of knowledge, discipline and desire.

To most managing finances is like the monster under the bed. It lies in wait, creates anxiety and stress, but rarely does is actually come out and bite us. If we don’t face our monster and take steps to mitigate the fear, the monster will always be there. Let’s shed light on ways to ensure that managing finances is a practical exercise and not a source of concern.

You Don’t Have to be Rich

The dream of winning the lottery or getting a high paying job is often thought to be the solution to gaining control of your finances. In fact, a large majority (70%) of lottery winners or people who have a large windfall end up bankrupt. On the other hand, many low paid individuals have retired as millionaires by following proper financial management.

Show Your Resolve

Most great accomplishments don’t happen instantly. Building a mountain with one teaspoon of sand at a time is quicker than pushing 10-ton boulders with your hands. Start small, make incremental progress and as you look back, you see the great strides you’ve already made toward your goals. The secret is taking on what you can handle and being consistent.

Start by Knowing Where you Stand

The reason why accountants are in demand is not that they make a company money, it’s that they allow a company to know just how money they are making or losing. The same can be applied to personal finances. Assemble all your sources of income and come up with a total. Assemble all your obligations: loans, mortgage/rent, credit cards and utilities. The difference, hopefully positive, is what you have to spend on daily living. Some people find they have $50 left over, some have hundreds. 

Reduce Your Expenditures

Other than not spending, you can find ways to reduce your outlays. This will result in more money to spend or the ability to pay off/down debt more quickly. If you have a number of credit cards, you can combine them and pay less interest in the long run. Debt consolidators can be very helpful in getting control of your finances.

The sooner you pay off/down these obligations, the sooner you can reallocate funds to long-term opportunities like investing.

Don’t let debt be a burden!

Your Future Begins Today

The first step in making change is realizing your situation exists and making the commitment to do something about it. As they say, a trip always begins with the first step. Making a constructive plan to improve your life will give you confidence, make you happier and reduce your concerns about the monster under the bed.

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