10 Ways to Gain Control of Your Finances
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10 Ways to Gain Control of Your Finances

Ever find yourself always in a difficult or tight financial situation? Chances are, your plight is partly due to your own fault. Read and find out below the 10 blunders and mistakes that people commit that cause them to always worry about money. Suggestions to overcome these mistakes and blunders are also offered to help you climb out of the quagmire of debt.

Do you always have that trouble making ends meet? Do you feel that however you try, you still end up with nothing in your pocket? Do you blame the poor economy as reason for your financial difficulty?

Well, if you are working and earning regularly, this should not be your plight. There must be something wrong with the way you manage your money and you need not blame external factors for your current financial situation.

Find out if you are guilty of mismanaging your finances by doing any or all of the financial blunders and mistakes below and find the way to gain control of your finances.

1. You have no financial goal at all.

If you do not aim to save anything then you tend to spend everything you've got whenever you have the opportunity. Allocate at least 10% of your income and stick to the habit for at least 22 months. A study revealed that it will take 22 repetitions to break an old habit and establish a new one.

2. You do not have any budget to control your spending.

A good budget plan to guide you in spending your money can help you gain control of your finances. There are fixed costs that you must pay like rent, water, electricity, among others but you can cut back on food or snacks if you find your belly getting bigger each day. Don't succumb to the tendency to eat more when you are emotionally disturbed. Get your sneakers and run outside to produce endorphins that will perk you up.

3. You have a credit card with credit limit beyond your actual capacity to pay.

You may have qualified for a high credit limit but this doesn't mean you have to abuse using your privilege to buy things on credit. Make sure you have savings to pay off whatever debt you have. Just use your credit card when your salary gets delayed, want to pay your airplane fare or buy a cheap product you need online. Gain control of your finances by not incurring unnecessary debt.

4. You end up paying more for something that can be bought at a cheaper price.

A short walk to a competing store for a good you want to buy can mean several dollars of savings. Find the cheapest one you can muster but don't sacrifice on quality. A quality product goes a long, long way and help you gain control of your finances.

5. You are using a gas guzzling car.

If your car consumes more fuel than it should, have it repaired right away. Or if you go to work close by, just walk. It's good for your health.

6. You are not investing your money.

Aside from savings, you can invest your money into something profitable. Just make sure you invest them wisely. Buy stocks if you have the opportunity and you understand how it works. If you have saved enough money, housing rentals are your best bet.

7. You don't care where your money goes.

If you don't track down your spending, you will not be able to discern which items really matter. This requires that you will be a bit meticulous in noting each cent you spend to gain control of your finances.

8. You always end up spending more than you earn.

Obviously, to save something you will have to limit your spending to what you actually earn. Spending more than what you earn will bring you towards a state of bankruptcy and will be detrimental especially if your family depends on you. Gain control of your finances by sticking to your planned budget.

9. You do not allocate anything for emergencies.

Accidents or incidental expenses always happen. It pays to have something ready for any eventuality so you will not find yourself begging for money or at the mercy of loan sharks.

10. You do not project what you will become in the future.

Have you ever thought about your financial condition in the next five years? Imagining yourself to be financially stable or successful will harness your energies to reach that goal.

Gain control of your finances by taking action right now. Start doing any of the above tips and free yourself from perennial financial problems.

Related Readings

How to Manage Your Personal Finances Using the SAVE Approach

Top 10 Strategies to Save Money

How to Get Rid of Your Financial Problems for Keeps

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