Take Charge of Your Financial Life

For many, it is hard not to get addicted to the power of credit cards and over spending.  It often starts in college for many of us and we find ourselves graduating with an addiction to charging what we want. No one wants to get to the point of bankruptcy but it can happen faster than anyone imagines.

Once you have this habit, it will only grow with income increases. Quickly you can find yourself with a heap of credit debt that is growing every month.

It can take years to master your own money.  This is why you need to look at your finances like businesses do...be the CFO of your own life.

Here are 5 ways you can do the same:

Write things down so I could use the numbers to create a snapshot of my actual spending habits. 

Track expenses.  Write it all down and make sure everything gets written down.  From the pack of gum to the mortgage payment.  This way you can see what you spend and where you spend it.

Build a budget.

Create one for yourself.  This is critical to success.  You will begin to better understand your money when you do this.

Think 50 percent for needs, 20 percent for savings and 30 percent for wants.
How simple is that? This is the most effective way to manage your money.

Practice conscious spending.
Conscious spending means actively choosing where your money goes.  This is just what a business does. Spend extravagantly on the things you love, but cut costs like a master on the things that don't matter. Think...do I really need this or do I just want it?

Turn a profit.

Everyone knows that if a company spends more than it makes, it can't turn a profit and soon it will be out of business. Apply this to your own finances. Never spend more than you make.

You can still have a life if you are frugal, smart and organized in your money matters.  The first step is making an honest effort to manage your finances!