The best way to live your life is to control your finances. If you allow your finances to control you, you’re in need of a financial overhaul. Controlling your finances starts with financial planning Mankato MN. Learning to take control of your money can be difficult if you’re accustomed to living paycheck to paycheck or drowning in debt. However, a financial overhaul can help you get out from under this control and regain the ability to live life financially free.
Find Out Where Your Money Goes
One of the biggest problems people face with their money is not really understanding where it goes. For example, you make $5,000 per month. Your expenses are $3,000 per month. You should have $500 left over every week, but you have no idea why you never have any money left over. Now is the best time to start tracking your spending. Using an app that tracks your money as it comes and goes is helpful, or you can simply keep all your receipts and use them to track your month for a month. This can help you learn where it’s going and how to make positive financial changes.
Stop Wasteful Spending
Wasteful spending occurs, and it’s not always a problem. However, it is a problem if you have debt, you don’t have savings, and you aren’t sure how to gain control of your finances. Where do you waste your money? Do you grab $10 cash back every time you go to the supermarket so you can grab a lottery ticket? It doesn’t seem like much to spend $10 on a lottery ticket, but it’s a lot of money when you go to the supermarket 5 times a week. That’s $50 per week, which is $200 per month. If you also order pizza every week at $50 per delivery, that’s another $200 per month. You’re looking at wasting almost a quarter of your disposable income each month on pizza and lotto.
Set Financial Goals
What are your financial goals? Write them down, break them down, and get to work. If you want to save $10,000 this year, for example, write it down and break it down into smaller, more attainable goals throughout the year. You must save $834 per month for the year. That’s $192.30 per week. That’s $27.47 per day. Find out how you can save that money, or how you can earn that amount of money every day to put it away to save. If you have debt, making paying that off become your priority prior to savings.
Financial planning typically involves saving for the future, but you cannot do that if you’re living in debt and have no disposable income. Speaking with a professional financial planner can help you make the most of your financial situation by teaching you healthy money habits. It’s time to change how you view your money, so you can learn how to control your money. You’re not free until you’re controlling your income.