Taking Control of Your Finances
Does life feel like it is spinning out of control? Has a
high-flying lifestyle set you on a crash course toward financial
ruin? Have your credit card balances snowballed beyond your
control? Then it is time for you to take control of your
finances.
To have successful money management, wealth accumulation, and
financial freedom, you must take control of your finances. No
one else is going to do it for you. You are responsible for your
finances.
"Money doesn't manage itself," Robert Schuller.
1. Figure your current net worth. You can not take
control of your finances before you know what your current
financial situation is. You need to know what your current net
worth is. Is it positive, or is it negative because of all the
debt your family has accumulated? Do you have investments?
Valuable antiques? Valuable personal property? Debts? Credit
card bills? A home mortgage? You can use our printable net worth
worksheet at
http://www.savingyourwaytosuccess.com/networthworksheet.html, to
help you figure out your family's current financial position.
2. Start a record file system. If you desire to become
financially successful, you need to keep track of your financial
records and statements. Keep in mind that disorganization
costs money. Buy a small file cabinet and start keeping and
organizing all financially related papers.
3. Income and expense record book. You also need a
clear picture of what the family's total monthly income is. How
much are you earning? Your spouse? Are there interest and
dividend payments you could add to your total monthly income?
You must know how much money is coming in to your household and
how much is being spent. Include every purchase and every cent.
You will never be able to take control of your finances until
you have a firm understanding of your current income and
spending habits.
4. Start a budget. Start a budget, and stick with it.
Once you know how much income you have and where and what you
are spending your money on, you can create a budget. You do not
need a certain "income" to budget and save money. All it takes
is the self-discipline to learn how to save and to take action
to save a little bit each paycheck. For more budgeting help,
visit
http://www.savingyourwaytosuccess.com/budgetreport.html.
5. Create financial goals. After you have a clear
picture of your current financial position, create a written
list of goals you desire to accomplish. Get out of debt? Save
enough money equal to 6 months income for emergencies? Pay of
the auto loans or student loans? Start investing in an
investment program, such as a Roth IRA? Save enough money to
purchase your family's own house? Where do you desire to be
financially one year from now? You may want to create several
lists of goals in a time-frame of six months, one year and five
years. Place your list on the refrigerator door so everyone in
the family will see it and constantly be reminded of what your
family is shooting for.
6. Taking control. If you have followed the above by
calculating your current net worth, organized all your family's
financial records, created a record book of your income and
expenses, started a budget, and created financial goals of how
much you desire to accomplish, you will be taking control of
your finances. You will no longer be controlled by bills, debt
and uncontrolled spending, but rather, you will be saving money,
getting out of debt, accumulating wealth, and becoming
financially independent. You will be saving your way to success.
Congratulations and good luck on your endeavors!