Have you ever felt the need to take control of your finances… instead of allowing your finances to control you?
If so, don’t worry, because you’re not alone! We’ve all been there. The weight of financial responsibility can be taxing, and the state of the economy doesn’t help. But there is still time in 2009 to learn how to balance your financial life. Let’s get back to basics:
Track Your Money
This premise is simple. Track every single penny that comes in and out of your life. This is the best way to be conscious of every dollar you spend… or save. It doesn’t matter how you track your spending. The key is to stick with it. Make it a daily habit to keep and tally your receipts, and don’t fudge the numbers. This is the only way you’ll know for sure where you stand, financially.
Build a Budget
Once you’ve been tracking your money for while, you should be able to build a budget. Budgeting will allow you to create a roadmap of where your dollars are going now – and where they should be going in the future. Earmark each of your dollars NOW. Don’t throw them away.
Get out of Debt
Debt is a killer. Use the rest of 2009 to figure out a way to unload some of this burden. Designate a certain amount of money each month to paying down those credit cards or student loans. Always pay more than the minimum payment, even if it’s just $10 more. Remember that credit card debt takes priority over student loan debt. Pay off your high interest debt first.
Spend Less Than You Earn
This is economics 101. And while it’s common sense, most of us don’t do it. The only way to build wealth is to spend less than you earn. Period. Building a budget and tracking your money will help you accomplish this, but even if you don’t do those things, spending less than you earn puts you ahead of the curve.
Get Automated
We’re nearly midway through 2009, so stop writing checks or waiting in line at the bank. By automating your finances through online bill pay and other systems, you eliminate yourself from the equation and make it much harder to mess things up. Better yet, you’ll have an online accounting record of exactly where all of your funds are going.
Taking control of your finances can be intimidating, but it’s achievable. You can get out of debt, save for retirement, and control your spending. Set aside a couple hours on the same day each week to sit down to figure out where you stand. Most importantly: get started now! This is one resolution you shouldn’t put off another day.
