Get Control of Your Money!

The Doctor's Momma

Financial Wellness Coaching

How to Be in Control of Your Finances

I don’t think anyone gets up and says, “I don’t care how I spend my money! I have plenty of money and can get more!”.  Instead, most of us are stressed over money issues even when we have a good salary and a decent job.  One way to feel less stressed is to have a plan.  Benjamin Franklin had a saying – "Failure to plan is planning fail". This is so true!  Whether you are a student in school, a stay at home mom, or a plumber, we all need to plan so we can do our job effectively – the student needs to do the homework to be prepared for class, SAH mom’s need to think about the next meal for her children, and the plumber needs to plan for the job to make sure he has all the materials needed.  It is no different with our personal finances.  Let’s take a quick look at some simple things you can do to gain control of your finances!

1.        Have a Written Plan for Your Money

Most people call this a budget, but I like to call it my spending plan.  We all spend money!  Let’s plan how we are going to spend our money!  Having a spending plan will help you to understand how you spend your money and where you may need to redirect some of your money when you are trying to set goals.  In my spending plan, I have a line for “Fun money” and one for “Vacation”.  I want to spend some of my money having fun and planning vacations.  How about you?

2.         Get Out of Debt!

Debt is a wealth killer!  When you purchase something with a credit card or personal loan, the cost of the item is increased with the interest you must pay for borrowing the money.  There is a great Bible verse I try to keep in mind when I am tempted to spend money I don’t have on something that in the end, may or may not have any value (think about clothing  or stuff purchased with credit cards, or a car with an auto loan – the value of these decreases significantly when you leave the store or dealership).  It is in Proverbs 22:7 – the borrower is slave to the lender.  That is what being in debt is like.  You become a slave to pay off that debt and are not able to be in control of your money – the lender controls your money!  Not all debt is bad debt, but credit cards are often called bad debt due to the high interest rates charged to the borrower and the habit it creates for the borrower – living beyond his means. That leads me to #3…

3.         Live Within Your Means – Live on Less Than You Make

By living within your means – on the amount of money you make or less, you can be in control of your money and finances.  It is best to live below the amount you make but make every dollar have a job in your spending plan.  Here’s another great Bible verse to back up this one – Proverbs 21:20 says, “Wise people live in wealth and luxury, but stupid people spend their money as fast as they get it.”  This makes me laugh out loud as it is so true.  Be wise in how you spend your money. 

4.         Save for Retirement

If your employer offers a retirement plan such as a 401k, 403b, SEPIRA,SIRA, take advantage of these programs.  It is a great way to begin saving and investing in your future.  If money is tight, try to contribute to the plan up to the match.  The average 401k employer match in 2024 is between 4% and 6% of compensation or salary. If you match it with your contributions from your salary, two things happen…your wages are decreased by the amount you contribute which in turn could lower your taxes and your savings rate increases double the match if you contribute to the match! The funds are invested and any dividends or capital gains that accumulate in the 401K are not subject to taxes until you withdraw the funds.  If you withdraw before age 59 1/2 , there is a penalty.  Keep these funds set aside for your future retirement!  Trust me!  Your older self will greatly appreciate this!

5.         Shop Your Auto Insurance

Before your premium is due, shop around for a better price for your auto insurance.  Don’t just allow it to renew without comparing to other companies.  You can even ask the current company for a discount or better price and share you are shopping around.  Do this with your cell phone and internet services too. Sometimes the current company will match what the competitor is charging.  Doesn’t hurt to ask!  It could mean more money in your pocket.

I don’t want to overwhelm you with ways to be in control of your money so start with these and master them. More importantly, consider working with me!  I can  empower and encourage you to develop a plan that will lead you to success!

An investment in knowledge pays the best dividend…

 Benjamin Franklin