Money doesn’t have to control you. We live in a world where everything costs more than before and sadly our wages aren’t going up with it. This doesn’t mean we go into debt. It means it’s time to take control and tell your money where to go.
Money is a tool or resource that we have and that’s how we need to treat it. Just like any other tool we need to learn how to use it.
Know Your Numbers
This is the first step. You need to understand what your income and expenses are. Fear is likely impacting how you are spending, saving, or enjoying your money. When you know what you have coming in and what you need to spend it gives you confidence to make informed spending decisions.
Wants vs Needs
Next you need to think about what financial goals you have. Where is your money going? Are you spending it on needs or wants? We have the required bills to pay, but what do you do with the leftover? That’s where the “wants” come in. Think about the coffee shop, groceries, going out to eat, etc.
Make and Stick to Budget
When you know your numbers, it is easy to make a budget. The hard part is sticking to it. Track your spending throughout the month. Don’t wait until the end of the month to figure out where you spent. Know where your money is going. I really like the Ramsey Every Dollar app. You can use the free version to make and track your money. There are other great apps out there too. Find one that works for you. The best part is you carry your budget around with you. No excuses that you have to wait to get home.
Have Some Fun
Make sure to include “fun money” in your budget. This is for something you truly enjoy. We work hard for your money so make sure you give yourself a reward.