Show Your Money Who’s Master

Written by Karen Bryan

You’ve got to show your money who is master. Your money is there as a tool to help you live the life you want now and in the future. So make sure that you keep control over your money, or it may end up controlling you.

First 4 Steps to Mastering Your Money

  • Begin by making a budget so you know exactly what money is coming in and going out every month.
  • Build up an emergency fund of at least 3 times your monthly essential spending.
  • Live below your means, then you’ll have some money left after you’ve covered your living expenses.
  • Decide how to use that excess cash to save towards what you want get from life e.g. buying a home, early retirement, starting you own business, long term travel or building up a college fund for your kids.

Career

In many ways having a well paid job with the opportunity of advancement and increasing pay is one of the best ways to have more control over you destiny, allowing you to both live for today and plan for tomorrow.

Debt

If you believe that taking on debt has a good chance of improving your life and/or that what you buy will increase in value, shop around to find the loans with the lowest interest rates. Don’t get into debt to buy non-essential things such as fancy smartphones & designer gear. We’ve found the living debt free works well for us.

Enjoy Yourself

Allow for some travel and/or leisure spending in your budget so you can enjoy life too. I’ve also written some tips for saving on travel.

This ariticle was included in the Totally Money Carnival – Buidling Wealth on 5 December 2011.