3 steps to control your finances

It is important to keep your finances under control.

11:22 12 December 2013

Finances can be confusing. It can be hard to manage them because it is not something taught as part of our primary education. It is really something taught only in secondary education and only if you decide to take the course. For many people, it means they may already be experiencing financial difficulties.

There are a few things you can do to help prevent financial issues or get out of them, if you are already dealing with them.

These steps can help you keep control of your finances.

• Get a good look at your finances. Break all of your expenditures and assets apart. How much money are you bringing in a month? How much of it is going out? When it goes out, where does it go? Take a notebook or use a spreadsheet and write down everything. Your basic bills, food costs, petrol, transportation, and utilities need to be written down first. These are generally figures that do not change much throughout the months. Next, write down everything you pay out in credit and then everything in cash.

 

• You need to set goals. Are you looking to save up money for a big purchase? Are you looking to pay off debt? Whatever the reason having goals is important to understanding and creating a budget for your finances.

 

• Create your budget. In order to manage your finances, you need to have a solid budget. This tells you where your money is, where it is going and what money you have to spend on extras, such as going out to eat.

Getting control of your finances and maintaining that control can make the difference between having to deal with financial worries and knowing that you and your family are financially secure. Think about it and take that first step towards your financial goal. You will get there someday!