Tuesday, February 1, 2011

Taking control of your finances


It is a good time now to start to take control of your finances. We are after all all worried about money and if the news are true we continue to borrow more and more.

In order to avoid financial disaster, it is important to take control of your finances. The following 3 points will give you a good start towards taking control of your finances and achieving your financial objectives.

  1. Have a plan

    It is important to have a plan in order to achieve your financial objectives. Just like any project you may be part of at work, if you don’t plan you are more likely to fail.

    Make a plan for your personal finances, have achievable milestones along the way to help you to stay motivated and keep your eye on achieving your objective.

    It helps you to stay motivated and the achievable milestones, if you achieve them, will slowly take you closer to achieving your financial objectives.
  2. Cut discretionary income as much as possible

    With personal finances it is easy to get carried away and spend a little more. Little expenses done often add up to an incredible amount.

    A working person who eats out every day is likely to spend about $100 every week on lunch alone.

    Watch every little expense and cut as much as possible. It will help you to stay on track towards achieving your financial objectives.
  3. Keep track of your expenses

    It is very little to loose track of where your money is going. Little expenses that you don’t pay too much attention to are likely to be dragging you down.

    The best way to keep track of your expenses is by having a budget, following it and keeping it up to date with the latest expenses, no matter how little they are.

    After a while it is actually enjoyable to take control of your expenses, get rid of debt and invest your cash.

    It feels much much better than being caught up in large monthly credit card or other unnecessary bills.

Related links

How to create a budget and stick to it

Top 20 personal finance tips

How to make some extra cash

1 comment:

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