But it doesn’t have to be this way! Finance control is a very important factor in one’s life. However, your money doesn’t have to be in control of you and your circumstances. It’s the other way around, you have to control your finances! When your money works for you, you can grow your cash and take advantage of the perks and discounts without having to work extra. And, it doesn’t have to be the other way around! Here are 6 easy ways to get started.
Pay yourself first
By paying yourself first, we don’t mean go all out and spend all your money on yourself. Put it into savings is what we mean. We know that saving can be hard especially when it feels like you have bill after bill, debt, and household expenses. Even when you want to save cash this month, you can get carried away in taking care of expenses. And before you know it, “I’ll save money this month” turns into “I’ll save money next month.”
But, when you pay yourself first, i.e., save or invest as soon as you get your paycheck, saving is not an afterthought then. It’s not your second priority. Set up an automatic schedule for savings and you won’t have to lift a finger to save
You need budgeting
Struggling to handle your finances? You’re probably tired of hearing this but you most likely need a budget right now! A plan on how to go about spending your money each month, based on how much you earn. A budget is and will be your best tool to change your financial future.
To start with finance control, you can write down your income and all your expenses (yes, write it down, it helps you visualize). And then do the match, subtract your expenses from your income. This will show you how much money you have left after expenses. Then allocate the remainder, cut off unnecessary expenses and track your spending.
Bring the bills down
The secret to controlling your finances is cutting your monthly expenses. Some expenses are fixed, like rent or a car payment, while others are variables. So, think frugal always! Cut down your variables You can reduce electricity consumption to lower your utility costs or even buy your food in bulk at a discount store.
Stop eating out
If you’re looking for an easy way to control your variable expenses every month, stop eating out, it’s as simple as that! Save yourself from that occasional urge to splurge at a nice restaurant. Your savings will bump up if you start cooking at home or carry lunches to work instead of eating out each day.
Get rid of debts
Carrying a lot of debt, especially high-interest credit card debt is a burden. If you want to change your financial picture for yourself, pay off your debt as quickly as possible.
Paying the bare minimum amount is not what it takes to get you out of debt quickly. You’ll need to set up a debt payment plan and good spending habits to pay off the debt as quickly as possible. Don’t just pay the bare minimum pay off a good chunk whenever you can and as soon as possible.
Control the urge to use a credit card
Say no to credit cards as many times as you can. When you’re struggling to make ends meet, using your credit cards will quickly wind you up in bigger debts. It will limit your savings and thereby affecting your financial goals.