Financial freedom: 4 ways to regain control of your finances

Financial freedom: 4 ways to regain control of your finances

Keeping your finances in order can feel quite challenging and overwhelming at times.

After all, you have to balance everything carefully, so you can use your paycheck to pay all your bills and debts, set something aside to add to your savings account, and still be left with enough money to cover day-to-day expenses such as groceries, transportation, and housing.

Nevertheless, many people still struggle with controlling their personal finances. They often spend much more than they can afford or start overusing their credit cards and rack up debt to the point where they don’t know how to pay it off.

Luckily for everyone in need of help, there are methods that can help you regain control of your finances. They range from crafting a sensible monthly budget to learning how to shop for the best deals on platforms such as Coupon Ninja and making sure to deposit savings regularly.

Here are some tips to get you started.

1. Create a monthly budget

One of the first things you should do when on a mission to regain control of your finances is create a monthly budget so you can start making the most of your paycheck.

This isn’t as hard as it might seem. Try to set up some rules and determine which expenses are essential and how much money you should invest in each of them.

For example, you can assign about $200 a month to spend on groceries, then another $200 for utilities, $50 for your phone bills, and dedicate $100 toward entertainment and subscriptions.

To make it easier for you to keep track of the cash, especially if you prefer using bills and coins, you can put the money into appropriately signed envelopes – in fact, there’s a whole budgeting system based on envelopes, and it’s absolutely possible to use this method digitally as well.

When you figure out how much money you should dedicate to the fixed expenses, try to look for ways to stay within the limits you just set. You can also aim to have some money left aside so you can stay flexible and always have some spare money.

2. Find the best deals

One of the main reasons many people end up spending too much is because patience isn’t their strong point.

There are many websites and mobile apps that offer an abundance of coupons, and if you want to have a better chance of keeping your finances in order, you should learn how to snag the best deals.

For example, if you need to buy a new pair of running shoes, check online for a store that offers free shipping or an incentive such as a discount on your next purchase. Then, make sure to look for discount codes online. You’ll boost your finances and get quality products for an attractive price. These small savings add up to significant amounts over time and can help you reach your financial goals faster.

3. Get out of debt

One of the best ways to regain control of your finances is to get rid of debts as soon as possible. This is often easier said than done, but it’s still worth it in the end if you take the right approach.

Here’s what you can do to speed up the process or make it more manageable:

  • Lower your bills. Try to cut down what you’re paying toward bills every month, so you can have more money to put toward your debt payoff.
  • Focus on paying the biggest debt first.
  • Find a source of additional income. Pick up a side hustle to increase your earnings.
  • Consider debt consolidation. It can lower your interest rate and this way, you will be able to start putting more money towards your balance.
  • Use debt relief. If you find it hard to make any progress on your debts or they start to overwhelm you, you can consider getting help in the form of debt relief.

4. Be prepared for emergencies

Being prepared is important when it comes to maintaining good finance practices.

One way to make sure that no emergency takes you by a complete surprise is to set aside 10 per cent of your paycheck.

You can keep the money in a dedicated savings account where it’s safe and secure. Usually, it’s recommended to have at least three to six months’ worth of expenses in savings in case you face unemployment or unexpected expenses.

It’s always wise to have money put aside for expenses such as fixing a broken water pipe or car tyres, paying for an unexpected stay at the hospital, or replacing broken appliances.

Having this money saved up will help keep your budget from getting out of control when something suddenly happens.

Make smart decisions and set goals

When you’re trying to regain control of your finances and achieve financial freedom, it all comes down to making smart decisions, setting goals, and putting in the hard work – just like with anything else.

To make this process easier, you can try proven methods such as creating a monthly budget, looking for the best deals when shopping, climbing out of your debts, and always being financially prepared for emergencies.

If you have a plan in place, you’re more likely to reach your goals and see satisfying results. Do your best, stay focused on what you’d like to achieve, and take back the control!


Disclaimer: The advice contained in this article is of a general nature. It is recommended that you consult with a qualified financial adviser to obtain advice that is relevant to your personal circumstances.