What steps are most important in taking control of your finances?

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Do you have a hard time trying to creating a budget you can actually stick to? It’s so common, it’s consistently in the top-10 New Year’s Resolutions. Tons of people around the globe have problems with creating a budget. But what can you do? Here are a few easy, first steps that can help you start to take control of your finances.

1. Credit cards. Don’t spend the money you don’t have. Living beyond your means is not only bad for your finances and credit score, it’s also one of the hardest habits to break.  The best thing to do is to use credit cards strategically– to lower interest rates on other loans or card, to buy items securely, to get rewards and or points. Try to pay down your balance every month, even paying it in full. 
2. Make a list of your expenses. Take a few hours and think deeply about all your expenses, and of course, about income. Be very patient and write down every detail. Do you like to travel? How much do you spend on travel? What about spa treatments and beauty products? Of course, you will pay the bills and buy food first, but you also want to enjoy life, and that is where most of your money goes. Do you like sports? What about those gym memberships? Have you ever been to that gym? That was a waste of money, for example. So, don’t buy those things you don’t need on a regular basis. Here’s where a budget comes in handy and makes it easier to evaluate what you “need” versus what you “want”. Start small, and don’t cut everything at once…or you’ll fall off the wagon.
3. What are your financial goals? How do you see your future? Do you dream of world travel? A family? Kids? Then you should live by your life goals. Financial goals just reflect your life goals. So, if you want to have a family in a few years, be sure that you save enough. Saving is everything, and the sooner you start, the better. Check out our 2nd fact. The list will show you where you can save and where you have wasted your money.
4. Stick to it. Stick to your new budget plan. And don’t worry, we all make mistakes. But, don’t let that one mistake get you to the beginning of the road. Good luck!