How to Take Control of Your Personal Finances

Published: Sep 11, 2019

Taking charge of your personal finances has endless benefits. By taking control of your money, you can end the vicious debt cycle, build your emergency fund, save towards retirement, or start saving to buy a home in a few years. Improving your finances is something you definitely want to do sooner rather than later.

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Here’s what you need to do to take control of your personal finances so that you can enjoy financial security and freedom from debt.

Set Goals

Before you can take control of your finances, think about the goals you want to meet. Do you want to pay off debt? Retire early? Want to make a big down payment on your next home?

By having financial goals, you have something to work towards, which enables you to track your progress. When creating financial goals, be sure to set both short and long-term goals. This way you can see the results of your planning, dedication, and smart money decisions.

Without goals, it’s much harder to get into the habit of saving.

Create a Budget

Finding it hard to make ends meet each month? Tired of having very little money left to save? If so, then you need to start budgeting. A budget is the simplest yet most effective tool that you can use to improve your financial situation now and in the future.

Start by listing your income and then all of your expenses. Then subtract your expenses from your income to determine how much money you have leftover to save or invest.

If you find that expenses take up nearly all of your income, you’ll need to look at where you’re spending your money.

Write down your expenses or use a personal finance app like Mint that tracks and categorizes all of your expenses. If you see that you’re spending a lot of money eating out or on entertainment, you’ll want to cut those costs so that you can stretch your money.

Pay Off Debt

Another important part of taking control of your finances is to get out of debt. It’s impossible to enjoy financial freedom if you’re buried under credit card and loan payments each month. Whether you have $1,000 in debt or $10,000, it’s not impossible to secure your financial freedom.

Start by looking at your budget and see what debt payments you owe each month. While there’s no one right way to pay off debt, many people prefer to use the debt snowball option. This involves paying down your lowest debt first, and then moving to the next lowest debt, all while making at least the minimum payment on your other debt expenses.

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Paying off debt is beneficial in that you:

  • Free up more of your money
  • Reduce your monthly expenses
  • Pay less in interest fees

Another huge benefit of getting out of debt is the psychological effect. Being weighed down by debt can take a huge emotional and mental toll, leaving you stressed, anxious, and even depressed.

Work with a Professional

Creating a budget on your own or knowing how to best invest your funds isn’t common knowledge. This is why financial experts are readily available to help everyday people take charge of their money. You can use one of the best financial advisors in your area to help you with all of your budgeting needs.

What’s nice about a financial advisor is that you can use them as much or as little as you need. Maybe you’ve already created a budget but want to learn more about investing in the stock market. Or maybe you need help just getting your head around what’s going on with your monetary situation.

Whichever financial scenario you’re in, you can count on a financial advisor to help.

Embrace Automation

In the past, budgeting was time-consuming and cumbersome, but with mobile apps and other digital tools, it’s easier than ever to keep track of your money. By using an automatic system to manage your personal finances you can passively pay down debt, make more conscious spending decisions, and invest your money without having to think about it.

So how can you automate your finances? Start by setting up automatic bill payments. You’ll then want to set up automatic money transfers to savings and your emergency fund. This way each time you get paid, the money will automatically be going into savings.

You can also automate your investments. Set a percentage of your paycheck to go towards an IRA or a 401(k) account. There are also tons of mobile apps out there, such as Acorns, which make investing your money a breeze. Pretty soon, you’ll be investing like the pros in New York on Wall Street.


Taking control of your finances doesn’t have to be hard or tedious. Using these steps you can greatly improve your financial health while also paving the way for financial security in the future.