My blog focuses on Financial Literacy/Money. You financial health is a key component of your life. There are specific things you can do to take control of it. The following contributed post is entitled, The Best Ways To Take Control Of Your Finances.
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Taking control of your finances can be challenging. However, the more you focus on it, the more you can transform how you use your money and what you can do with it.
So, how do you really take control of your finances and what’s proven to work?
Track Every Dollar
As strange as it may sound, tracking every dollar is critical. If you can keep an eye on every cent, then your overall money picture will usually take care of itself.
Try to log as many expenses as possible. Then, at the end of the month, review where your money is going and whether it is worth the outlay. You have to live a little, but it shouldn’t be dominating your finances. There should be plenty left over.
Build Out Your Dollar Spending Plans At The Start Of The Month
Next, you want to build out your dollar spending plans at the start of the month. That means tracking where every dollar you earn is going to go so you know what you’re spending ahead of time.
When you approach your money like this, it makes you much more intentional. Because you know already where all your money is going, there’s no ambiguity. This approach stops money from disappearing.
Deal With Life Crises Expertly
Sometimes, of course, life will throw a curve ball in your direction financially. And when this inevitably happens, you want to be ready.
The best way to do this is to gather people around you who can offer help. Having a powerful advocate makes a real difference.
Once you have the right people in place, you can begin to respond to the issues you face, whether they are legal, familial, or just pure bad luck. Then, you can really begin to move forward with your life and start enjoying things again without worrying about money being a big issue for you.
Give Yourself A Buffer
You also want a financial buffer in life. Ideally, you don’t want to be feeling like you’re living on the edge all the time. That’s no fun at all.
Even a small buffer can make a big difference in your psychology. You suddenly feel like you have room to move and that you can really do things with your time. You don’t necessarily have to walk down the same tired road you’ve been following all your life.
Reduce High-Interest Debt
Finally, you can really take control of your finances when you eliminate your high-interest debt. This kills wealth more than anything else, so getting rid of it makes an enormous difference to your finances and well-being.
The best way to get rid of high-interest debt is to attack the most expensive loans first, reduce them, and then work from there. However, you can also go for quick wins if you want, paying off smaller debts to encourage you to complete the process and really make it happen. Target anything that’s above 10% interest, as this is really expensive.
