Whether you’re struggling with unmanageable debts, a poor credit rating or lack of cash flow for your company, it is vital to your current financial situation, and your future success that you take control of your money.
When you are the master of your money, you can build a strong financial foundation that will help you to look after your family and meet your major goals with ease.
Here are a few things that you can do to improve your situation and become the master of your money now and forever:
Think About the Past
A good place to start is by thinking about the things you did in the past that have led to less than optimal financial circumstances today. Once you know what you’ve done wrong before, you can start making better choices now.
Pay Off Costly Debts First
If you have various types of debt, it’s important that you pay off the ones that accrue the highest interest first. Most of the time, this will be credit card debt. Put all of your focus on that, and you’ll see your debts go down much more quickly.
Don’t Use Debt
If you want to be really in control of your money, if you can, stop using credit cards and other debts altogether unless you know you can pay them off before interest starts to accrue.
Obviously, if you run a business, then you’re going to need to use a line of credit or two, but in your personal lifer at least, try to keep the use of debt to an absolute minimum.
Cut Your Cloth to Suit Your Pocket
If you want to be the master of your money you need to, y’know have some money to take control of, which might mean changing your lifestyle a little. Ideally, you should change things up so that you always have more coming in than going out.
Pay Bills On Time
Paying all of your bills, not just debt-related bills, on time will ensure that you maintain a good credit rating, which will help you should you need to seek investment in your business, a home loan, etc..
Use Personal Capital Review Software
Conducting a Personal Capital review of your finances on a regular basis, using the best software available will ensure that you’re much more in sync with your money, enable you to track your cash more closely, and ultimately help you to firm up your finances. It makes sense!
Collect a Cushion
Ideally, you should build up a financial cushion that represents between six and twelve months of your income. That way, if your business is struggling, you end up out of work, or you’re hit with another financial emergency, you will swim instead of sinking.
Buying insurance for everything from health to home, disability, and even pet insurance, if you have it, is a must if you want to maintain control over your money. After all, nothing can send you spiralling out of control and into the arms of debt like an unexpected life event!