Who does not want to take control of their money and finances? It is one of the major goals for many people to become a master of their spending as well as income. No one wants their spending to control their life. Many feel the quality of their life has not been up to the mark because of how they didn’t have any control over their money. If you also feel the same, it is time to become the master of your finances and take actions that will bring a change. It takes more than just wishful thinking to take control of your life and even a small, very simple action can make a huge difference when carried out in continuity. This post is going to lay out 8 methods which you can follow to take more control of your money rather than letting your money control you. These actions are simple but highly effective and following them can help you secure your financial condition for a long time. Let us get started.
- Keep a record of your spending and income – track how you spend each penny and make a note of where you could have saved money. This will help you for your future since you would know what expenses are a waste and what are necessary. Maintain an account of your income as well as your spending. You can do this by using online applications, mobile applications, and even using the traditional notebook approach.
- Follow a budget – write down a budget in which you clearly specify just how you will spend your money. The budget should clearly state the maximum limit for all the categories. For instance, you could limit your spending on monthly groceries at 300 dollars so you are aware of how much you spend and that it does not exceed the given amount. A budget can seem boring and many people would rather go with the flow but it can actually give you a lot of control over your spending and help you optimize your transactions.
- Optimize your accounts – you could be a victim of having a bank account which does not give you much interest but takes service charge in return for its services. If you have been ignoring your bank account and the money that is being spent without you getting much in return, it is time you take control. Optimize your accounts by moving your money to a high yield savings account. There are banks which offer higher interest rates than others on savings accounts and you should definitely opt for them. Also, use a rewards credit card instead of other alternatives since they offer you a lot more advantage.
- Keep an emergency fund – an emergency could strike at any time and you will not be warned about it. This is why, you should have an emergency fund at your disposal. Start an emergency fund and start maintaining it. When emergencies strike, some people end up acquiring debts. The quickest and the easiest way to acquire one is via credit cards and so when people use their credit cards to fund emergencies, they end up paying a lot more (And also take a long time) to clear the debts, thanks to the high interest rates. An emergency fund will make things a lot easier for you so save your money before you spend it on other things.
- Clear your debts – no one likes the burden of having a debt on their shoulders so it is in your best interests that you get out of your debts. The ideal approach would be to pay high interest debts off first so you can save money in the long run but you could try various other approaches such as paying the smallest debt off first, etc. The relief one feels when they get out of their debts is priceless and with dedication and commitment, you can also do it!
- Maintain a retirement fund – buy stocks for your retirement because you don’t know what is going to happen in future. If, for some reason, you end up in a financially weak condition in your old age, you will not have much means to get help and might even end up homeless. Now is the time you start a retirement fund and maintain it. Get a retirement plan right away, no matter how young you are, and maximize the benefits.
- Go for automatic finance management tools – automate your routine transactions for more precision and accuracy. Automating these tasks will remove human involvement and thus reduce the chances of mistakes greatly. Pay your electricity bill each month automatically, pay your gas company automatically, and so on and so forth.
- Increase your income – a good idea to increase your income would be to ask for a raise at work. There are many strategies using which you can guarantee a definite raise if you have been working well at your job. You can also get a second job to generate a fraction of what you earn right now but without much effort.
It is important that you take control of your finances despite the task seeming scary in the beginning. When you get started, you might feel a sudden revulsion towards all the extra work but in the long run, the results will pay off well. Steps like “clear your debts” and “start and maintain a retirement fund” can seem especially intimidating since it takes a long time to accomplish them but the good news is that you can do it if you try. Things will settle down and you will actually feel a lot better as time goes on. To conclude the post, you will be able to accomplish all your financial goals and be in control if you try and make efforts.