Control Your Finances Or They Will Control You!
Most people these days have trouble keeping up with the high cost of living, stagnant wages and too much debt. But, if you plan well, you can enjoy life now, make necessary changes and plan for your future as well. Below are some tips and advice aimed at getting your finances under control, and avoid letting them control you.
Budgeting is possibly the hardest, yet most important part of gaining financial control. However, once you get the hang of it, adhering to a reasonable budget becomes second nature. Just keep a budget journal of all your monthly expenses, and subtract them from your total monthly income. Add to your expenses a little for savings, some for an emergency account, and even fun things, like a vacation, or major purchase, such as a car or down payment on a home. The amount you have left over after subtracting expenses is yours to do with as you see fit. It's that easy. But, it's important to follow it, and don't overspend needlessly.
Be sure to avoid impulse buying. That new pair of shoes may be enticing, but you may have a closet full of shoes at home. Leave the store, and think about the shoes for a couple of days. Chances are, you will forget all about them. The same applies to eating out, expensive groceries and toys for the kids. Buy only what you need, and keep the blinders on!
Set some attainable goals. Financial goals can be anything from saving for a new home to increasing your IRA contributions. Whatever your goals are, try to save some extra funds each month to put toward them. Keep your eyes on these goals, and your rewards will be worth the sacrifices.
Build up a healthy emergency fund. You never know when you may need to pay for an unexpected medical bill, some pricey car repairs or a trip to visit an ailing relative. If you are not prepared, these expenses can wreak havoc on your budget. Set up an emergency savings account, and add to it monthly if you can. This way, unforseen problems won't break the bank.
A great way to become more financially responsible is to eliminate your debt. You may not be able to eliminate your mortgage, but those high balances on credit cards, car loans and other revolving credit can cost you a bundle in finance charges. So, put whatever you can toward becoming debt-free, and you will have more money to invest in worthy financial opportunities.
Finally, be sure to invest in your future. Many people fail to save for their retirement years and suffer the grim consequences. Take advantage of your employer's 401k plans and possible matching. Put savings in interest-bearing accounts and save money wherever you can. You will thank yourself later.
If controlling personal finances were simple, everyone would do it. Remember, you are not alone on your journey toward financial independence. It takes sacrifice, planning and hard work. But, as you enjoy life now, and build your confidence for a good future, you will find that it is worth all the effort you put into it.
