How to Get Control Of Your Personal Finances

Having control over finances is a goal that many people have, particularly those who never seem to get any substantial savings together, no matter how hard they try. Not having a good grip on personal finances can lead to feelings of stress, hopelessness and can have an adverse impact on a person’s self esteem.

The following three tips – if adopted permanently – can help people address their financial woes and ultimately gain control of their finances.

Determine Overall Net Worth

While it does not have to be done to the nearest cent, finding out one’s net worth as accurately as possible is an important first step to gaining control of their finances. This is done by figuring out the worth of assets, such as savings, property, vehicles and the like, and then subtracting debts from that amount.

Those who have substantial debts may find that they have a negative net worth, which can be extremely disheartening and demoralising. Despite this, there is no need to give up hope, as the other steps will help address financial problems as well as what causes them.

Prepare a Budget

The characteristics of a good budget is one that covers all expenses (large, small and everything in-between), has some degree of flexibility, and is realistic. By covering all projected expenses, it is less likely that any major, budget-disrupting expense will occur, which keeps a person on the right track with regards to their finances.

In the event there is a major unexpected expense, however, a flexible budget will cater for most or all of the amount, which means there will be little or no adverse effect on the budget or financial goals. Having a realistic budget makes it more likely that the budgeted expenses and savings goals will be met, which ensures that a person’s motivation will continue and they are more likely to keep sticking to their budget.

Make Investments of Savings

Once a person sticks to their budget for a considerable amount of time, savings are likely highly to start accumulating. It can be easy to spend these savings on needless purchase before they can grow to a substantial amount, which is why it is beneficial if those savings are invested.

Such an investment can be something as straightforward as an online savings account, which generates interest but can still be accessed at any time if required.

The team at Hart Partners are experienced in helping everyday Aussies to take control of their finances. We invite you to call us today on (03) 9600 3220 or email us paula@hartpartners.com. to schedule a no obligation appointment