5 Steps to Take Back Control Over Your Money

Whatever you are making money or creating saving habits you must keep squeezing your budget and get spending under control. You should worry about money so that you will be in control of your financial habits. This way you can regain control of your money.

Here are five common business practices that can help you manage your capital better.

When I was in college, I fell in love with credit cards and graduated with an addiction. My habit grew as I made more money. By the time I turned 30, I had over $ 35,000 of debt and a large mortgage to pay.

Ways to Take Control of Your Money

Ways to Take Control of Your Spending

Eventually, I decided to turn things around. But this did not happen overnight; It took me several years to control my money and this was possible when I understood that I should treat my personal finances like those of my business. It was not easy to bring the cold cost-benefit rigor to my daily life, but the result was that I no longer worked to pay off debts.

5 Things I’ve Done to Regain Control of My Money

Monitor your expenses

As I was getting out of debt, monitoring expenses were the first thing I transferred from my business to my personal life. I began to write all the purchases I made, no matter how small. Now, this is the important thing: I did not do it to judge myself. I simply wrote things down so I could use the numbers to identify my spending habits.

Create a budget

Budgets allow you to use expense monitoring information to make plans for the future. You do not have to complicate yourself much. You can use this simple balance formula: 50 percent for needs, 20 percent for savings, 30 percent for desires. How simple is it? If your expenses do not follow this parameter, you must go to the next step.

Practice Conscious Spending

This means actively choosing where your money goes, just as you do in your business. Spend too much on things you like and reduce costs on less important things. This happens automatically in business, where you monitor every penny you spend. People are less likely to spend without thinking if they know they will leave a paper trail.

Make it into profit

I have a theory: If we could replace the word “savings” with “profits”, the world would have many more motivated savers. Everyone knows that if a company spends more than it earns, it can not turn it into profit and soon the business will die. The same thing happens in personal finances.

Know your value

Businesses have a variety of financial metrics that let them know where they stand. There is no reason why you should not do the same at home; If you use software to monitor your expenses, it’s all about generating an income sheet and a profit and loss sheet.