How to Start Taking Charge of Your Personal Finances

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The state of affairs of your personal finances do not just influence your life and lifestyle. They do in fact dictate it. Everything from your auto loan interest rate to your credit card limits to your projected retirement date and even what jobs you can get are all impacted by your credit score and your personal finances. If you want to get the most out of life, or just get something out of it at all, keep reading.

Where are your personal finances at right now?

The first thing that you have to do is to get a grip on how things are right now this very minute. Get copies of all your credit reports, look up your bank accounts, count the money in your wallet and stack up all your bills that are due. Know what the upcoming priority expense is and deal with it immediately.

Fix your personal finances with a budget

Dealing with the crisis situations you are facing in the world of money might take as many as a few months to get out from under. But you cannot rest easy then, as you have to take steps to avert future problems.

That means you need a budget. Fortunately, it is very easy to create one. Your income is probably already fixed or limited to some degree, so that half is easy to figure out. Even if it is variable, just assume the bare minimum that you would get any given month as your means to live within. The spending side of your budget is also very easy. Do not start writing down your daydream budget. Instead, track your spending for a few months, either by writing down everything, or doing it all electronically.

Create a strict budget and exercise some self-discipline; it’s the only way you’re going to work your way out. Be sure to have realistic expectations of what you can and cannot afford. One app that has helped with budgeting is TrueBill.

Then, you will not only know what your routine expenses are, but you will also start seeing areas where you can shave a few bucks off here and there. It actually does not take much in order to create some breathing room for yourself.

Stick to your budget to get ahead

Stick to your budget. It might be fascinating at first and even feel like a game, but you have to keep your enthusiasm up and find some way to make it a habit. If you can work a little regular treat or passion that moves your heart in there so that you have a reason to get it done.

Dealing with credit card debt

As you know how much income you have free to work with on paying off debt, start fleshing out a schedule for taking down your credit card debt. Make sure that you can make the minimum payments every month on all of them, and then start on the outstanding balances. Consolidate when you can, and move higher interest balances to lower interest cards. Then, start chipping into the highest interest balance.

Maybe your personal finances need a family intervention

Whenever possible, involve your friends and family in your efforts. Possibly plan a group vacation as a reward for everyone getting their finances straight. Group accountability and support can go a long way in life.

Looking at other sources of income

Even if you just get a temporary position or a side hustle that brings in a few extra hundred dollars for a few weeks, having a second job is a fast shot in the arm financially. If possible, get something permanent that will fit into your lifestyle and schedule and make it a part of your economic recovery. You can quickly pay off high-interest loans and credit cards, and then start building a nice nest-egg for yourself and/or family. It’s worth putting in the extra hours in exchange for the enormous reduction in stress that you have to endure!

Side hustle ideas that pay

In the spirit of the financial rule to have more money coming in than going out, here are some side hustles that may just be the thing for you.

FREELANCE WRITING

There are several websites available where you can pick up freelance writing jobs. (Such as Fiverr and Upwork) These sites will help protect you from scammers. Overtime, as your experience grows you can be bolder in asking for higher rates and more difficult jobs. The opportunities are endless, and you can start writing your own blogs and books to bring in even more income.

CONSULTING

You could start your own consulting business. If you are an expert in a specific topic, then this might be a wonderful opportunity for you. You can help others find the opportunities that are right for them. The most important skill is going to be networking. You will need to keep a good influx of new clients knocking on your office door. LinkedIn is a good place to begin networking professionally.

START A DAYCARE

If you have the right type of home, you can dedicate part of it to a daycare. This can be a great way to be able to stay home with your kids in their younger years. You can even have your friends start as your first clients. This will be more expensive than you would think as you will need lots of permits and other paperwork before you can get started. However, once you’ve got the bureaucracy under control this can really be a good opportunity for you.

SELL PRODUCTS ONLINE

One simple way you can start bringing in more money is to become a reseller. This is great for people who enjoy collecting or bargain finding. You will need to build a good online store on Ebay, Etsy or another similar site.

Additionally, you will need to spend a lot of time researching and learning the prices of items so you know when you go shopping that you will be able to make a reasonable profit on an item.

AFFILIATE MARKETING

Selling other people’s products online is simplified with affiliate marketing. Rather than dealing with your own inventory, you sell other company’s products and earn a commission. Most affiliate programs are free to join and offer a vast variety of products to market. For more information, go to our Affiliate Programs Page.

SIDE GIGS

If you have extra free time there are options such as DoorDash, or Instacart if you want to pick up some delivery work. Another option, especially if you have a car you want to use, is Lyft or Uber. While this is not going to work for yourself, but you can decide when and how much you want to work.

Are you ready to take control of your personal finances?

The individuals out there with the most amazing money management techniques really have done nothing more than applied the basics we all know as habits in their lifestyle. Follow in their footsteps and you can follow in their success.