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Personal finance is a topic you should know about and care about. If you want to have a secure financial future and not live paycheck to paycheck then you must find ways to and accept responsibility for taking control of your finances.
You have the power to improve your situation and lifestyle when you make wise choices about your money. The following tips and advice will help you take back control over your finances and ensure you’re in the driver’s seat when it comes to your money and how you’re using, spending, and saving it.
Educate Yourself
Your first piece of advice that will help you take control of your finances is to educate yourself on the matter. Read books and blogs and learn more about the lingo and best practices so you can adopt them in your life. Information gathering is useful and knowledge is power and learning tips will help you feel more comfortable managing your money and discussing the topic. Many articles and books will cover specific topics based on what you want to understand more in-depth and will provide you with practical advice for applying this new knowledge.
Set Goals
Another piece of advice to help you take control of your finances is to set goals for what you want to achieve regarding your money and savings. Figure out where you see yourself five and ten years from now and what investments you want to be making and assets you want to have. Consider your income and job, where you want to live, what type of car you want to drive, and if you want to travel in the future or not. Think about and visualize your ideal lifestyle and then take the steps forward that will help you make a positive change in the right direction. Goals will drive and motivate you to make wise choices when it comes to your money and finances and you’ll start to think before you spend.
Plan for the Future
You can also take control of your finances and money by planning for the future. You must be able to think about not only your life and situation now but what it’s going to look like in ten and twenty years from now. For instance, it may be that you want to retire on a beach somewhere or that you’ll need to help finance your parent’s living situation, such as having them in a senior living facility like La Posada. You must think through these types of challenges and realities in the present so that you have money saved up and ready to use for important matters such as these.
Begin Budgeting
You may be spending more than you wish to these days and are feeling the pinch at home. Now is a wise time to take a step back and create a budget you can follow. Begin budgeting to help you see what money you have going out and coming in and where it’s exactly being spent. You may be able to identify opportunities to cut back and will also know how much money you have leftover once all your bills are paid. A budget will help you live within your means and get your finances under control so you start to head in the right direction when it comes to managing your money. Not only create a budget for yourself and your personal life but also for your business and freelance job. Make sure you separate out your expenses and costs and know where your money is going and how it’s being spent in each category and sector of your life.
Reducing Spending
Another piece of advice when it comes to your personal finances and taking back control is to reduce your overall spending. Find ways to cut back and spend less so you can save more and have more money in your pocket and bank account. Take a look at your current bills and expenses and start knocking items off the list or finding ways to cut costs. For instance, it may be that you cancel cable, switch phone providers, or join a less expensive gym. There are likely several opportunities to save and adjust if you’re willing to change your habits and ways a bit and live according to what money you have coming in each month.
Shop Frugally
It’s also not a bad idea to think about being a more frugal shopper when you’re trying to get your finances under control and reign in your spending. Think about going to consignment or second-hand shops for some items you need and making sure you have coupons or know that there are sales running before you spend your money. Shop frugally and you’ll soon start to see that you’re able to save more each month and that money doesn’t feel as tight. Shopping frugally will take a little extra effort and energy but the rewards that come with doing so will be well worth it in the end. Be honest with yourself about what you can afford and learn how to shop so that you’re not always paying the highest prices and purchasing the fanciest items.
Meal Plan
If you want to take control of your finances then look at how you’re spending your money on food. For example, it may be time to stop eating out so much and to begin cooking at home more often. Get a better handle on your finances by meal planning and making grocery lists before you go out shopping. It may help to grocery shop and cook on the weekends so you can pull meals out of the freezer or fridge as you please during the week. Think about making coffee at home and packing a lunch or snacks if you’re on the go instead of always buying food out. If you do choose to go out to eat then look at the menu prices and what you can afford before heading out. You’ll likely save a lot more money this way and can improve your health and diet as well.
Pay Off Debt
A lot of debt hanging over you can be frustrating and stressful. It’s in your best interest to start paying off debt now and whittling it down over time. Take control of your finances by not letting debt control you. Get ahead of and in front of it so you’re the one calling the shots and making payments on time. Consider what interest rates you’re paying and work on the debts with the highest interest first. It may help to set up automatic payments so that you don’t have to think about the debt but know that it’s getting paid down each month. Once your debt is taken care of you’ll feel a sense of relief and freedom and won’t be so worried about your financial future. Remind yourself that once you get out of it that you should do all that’s in your power to not get back into debt.
Use Cash When You Can
You should think about stopping using your credit cards if you want to be more financially secure and in control of your money. Use cash when you can and avoid putting large expenses on your credit cards that you may have trouble paying off. Instead, plan for these types of expenses and begin saving up your money now so you can use cash to pay for what you want or need in the future. Using cash will help you better track your finances and keep you out of debt in the long term. If you can’t pay cash then you might think twice before making a big purchase you can’t afford. In an emergency, hopefully, you have money saved up that you can access for this type of situation.
Track Your Spending
Get to a better place financially by tracking your spending and habits. Get to know yourself better and how you use money and what you use it for. Write down what you buy and review your receipts so you can see for yourself where your money is going. Tracking your spending will help you be more honest with yourself about how you manage your money and in what areas you choose to use your money the most. It may open your eyes up to behaviors and habits that have been holding you back from finding financial freedom.
Stop Making Excuses
You must stop making excuses about why you can’t get your finances under control or why you’re destined to live a certain way. Quit the excuses right now and instead reframe your self-talk and make sure you take a positive outlook and approach to your personal finances. Let today be the day you start tracking where your money is going and setting goals for what you want to achieve in the future. Start believing in yourself and your ability to take control of your money and finances and turn your life and situation around for the better. Know there will be setbacks and hardships even when you’re doing everything right but then stay hopeful and positive and work hard to pick yourself back up and start again.
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