While there are a lot of things we can’t control, our finances are not one of them. Taking control of your finances seems rather a big deal. Some people get confused about how to start; whereas some tend to avoid talking about money.

Getting the proper financial education is necessary to be able to control your finances. You have to learn that money is just a tool for convenience. The question is – how will you use this tool effectively? How will you control and make the most of it?

You have to know what possible sources of income you could try and where your money is going. This is obviously important so you won’t lose track in dealing with your finances.

To help you with that, here are ways to take control of your finances. 

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Image from Ivory Mix

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1. Understanding your assets and liabilities

Robert Kiyosaki’s Rich Dad Poor Dad talked about the difference between assets and liabilities. Assets are those that bring money into your pocket while liabilities are those that take money out of your pocket. Understanding these two major terms in finances would help you a lot in gaining financial control. 

So, you have to know those things that consume most of your money. Maybe, you have to cut down on those. If you think you have a lot of subscriptions such as on Netflix or Amazon and they’re taking loads of your money, you may consider quitting one of them. They could be doing you more harm than good. Here are some of the things you can cut down from your budget.

2. Build your own business

The thought of building and owning a business could be intimidating. There are a lot of factors to consider – from financial capital to human capital; from managing oneself to managing employees. It’s a lot to take in. But it does not mean it is impossible. 

You can start small. You could do an online sale. Try selling used books or clothes. Once you get the hang of selling something, you can expand. But first, you have to learn the ropes of selling by starting somewhere modest.

3. Take a constant Financial education

Attending one financial seminar is not enough nor reading one financial book is. You have to constantly study. You have the internet at your disposal; make the most of it.

For one, you can start with Robert Kiyosaki’s Rich Dad Poor Dad or you can check their website richdad.com. It is where I learn financial tips as they’re so practical and direct.

4. Learn to budget

Budgeting is a vital skill in taking control of your finances. You have to know those things you have to spend money on. List them down and beside each item, write the corresponding amount you need.

If you are aware of your expenses, you will be guided accordingly. You would no longer have to blindly spend money from here and there. You would instead have a tighter rein over your finances.

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Image from Ivory Mix

5. Track your expenses

Sometimes, even if we know how to budget, we fail to keep track of this thing. We neglect to monitor our expenses. We have to admit that our expenses could change from time to time. It could be less now but high later.

It is imperative then that you make it a habit to use a financial tracker. I’m sure the Play Store has a lot of things to offer. You just have to look for one that best suits your style.

6. Make an intentional spending

Taking control of your finances starts with purposeful spending. You have to treat each item you buy as an investment. Thus, when you buy, you only buy those that are necessary and of high quality. They last longer so you won’t need to buy another one right away.

You then have to decide first and think it through before splurging. Money does not come easily as fruits are from their trees as the old generation always says. They couldn’t be even more true. 

ALSO READ: TOP 10 WAYS TO SAVE MONEY IN 2022

7. Make an emergency fund

There are things that are unexpected in life such as natural calamities, depression, or recession. These affect our financial capacity. We may lose everything in a second. To survive in this situation, you have to set up an emergency fund as early as now.

Set aside 10% of your monthly salary for this. Emergency Fund helps you ease your financial worry and burden. It has the potential of helping you take control of your finances.

8. Get into the world of investment

Investing is surely one of the ways for you to take control of your finances. The more you invest, the higher your chances of receiving a two-fold return on your capital. Just be careful with this. You only invest the amount of money you are willing to lose.

When you invest, you are gambling. It is a matter of consciously taking risks. But once you learn the ins and outs of investing, you can surely take it as a piece of cake. And you will profit eventually.

9. Diversify your sources of income

It is not wise to put all your eggs in one basket. You have to learn how to put each of them in various fields. If you have multiple sources of income, you would feel more secure financially.

Risks such as bankruptcy happen every so often. Or, low sales could take place. Diversifying your income sources could help you thrive in these circumstances.

ALSO READ: HOW I EARN AN EXTRA $1000 FROM SIDE HUSTLES

10. Hone self-discipline

Everything money-related is all about discipline. You have to develop self-control over spending. There are days you suddenly find yourself extravagantly splurging. It happens to the best of us.

But this could worsen if you did not control yourself. So, have the financial discipline and take control of your finances. Stick to your rules on spending. Don’t miss a day without checking yourself. Remind yourself that you’re making this great sacrifice to gain financial independence.

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Ready to practice these ways to take control of your finances?

Taking control of your finances requires focus and determination. The start could be promising but what will test you would be the challenges that come with it. Temptations would be along the way trying to sway you. The trick here is to focus on what really matters. 

To achieve financial independence, which is the ultimate goal of why you need to control your finances, you have to be willing to make sacrifices. Learn this and you will do well financially. 

QUESTION: How do you take control of your finances? Any other tips?

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11 Comments

  1. Pooja

    July 21, 2022 at 5:34 AM

    These are some great tips. I do diverse my income and investments and keep a budget ready for every month but would like to start incorporating other tips. I feel like I can a lot more with these tips.

  2. Cinny

    July 20, 2022 at 2:17 AM

    Budgeting is so important. I also think it’s important to save and not use all of your paycheck!

  3. Angelica

    July 20, 2022 at 12:14 AM

    Having multiple streams of income and beefing up my savings has been such a game changer. I finally feel more financial secure while still learning about personal finance.

  4. Krystle

    July 19, 2022 at 7:21 PM

    I need all the help I can get. I have the most issue with self discipline haha!

  5. Bryan

    July 19, 2022 at 6:20 PM

    I work in accounting/finance and I always recommend that people create a personal balance sheet at the end of each quarter. Knowing your own net worth is a good idea, and it motivates me to save/invest more so that I can watch my net worth improve.

  6. Rose Ann Sales

    July 19, 2022 at 5:51 PM

    These are all really great and very helpful tips! Thanks for sharing this with us this will help me a lot about budgeting.

  7. Ntensibe Edgar

    July 19, 2022 at 4:47 PM

    Nnniiiicccceeeeee….we all need to track our expenses closely and diversify our earnings.

  8. Subarna

    July 19, 2022 at 4:33 PM

    Diversifying your income and storing emergency fund are very essential now a days. We never know whats there in future. All the tips are indeed very important for managing finance smoothly. Great post !!

  9. Beth

    July 19, 2022 at 12:18 PM

    These are all excellent tips. Budgeting and continuing to learn more and more about money are both the backbones of keeping your finances in check and making them work for you.

  10. Stephanie

    July 19, 2022 at 11:42 AM

    Tracking and diversifying were the two things that made the biggest impacts for my husband and me. We are now debt free, but it took a lot of spreadsheets and cutting back on things here and there to make things better in the long run!

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