It’s easy to feel lost when it relates to your finances. Over 58% of Americans don’t even have $1,000 in their savings account in case of an emergency. If you feel like you’re getting into debt, losing your financial freedom, or experiencing any other type of economic issue, it may be time to take control of your finances. Here are some steps you can take today to help you take control of your money.
Break Down Your Budget
The very first step to control your finances is to understand what your current money situation looks like. First, calculate how much you make every month by checking your paystubs. Then write down every single bill you have and how much you pay for that bill. How much do you have left after you subtract your bills from your monthly income? If you have 0 or a negative amount left, that means you’re spending more than you make in a month.
Consolidate Your Debt
You might have student loans, credit cards, or other debts that you pay every month, and you’re likely paying a lot in interest. Try to consolidate down your debt to get a lower interest rate. While it’s not getting rid of your debt, it will lower the amount of interest you pay so that you can pay down your principal loan amount. It also will reduce the number of payments you have to make by consolidating your debt into one account.
Skip the Extras
Go through your bank history to analyze what you spend most of your money on. Do you enjoy going out to eat every night, or are you always buying something online? This could be wasting a lot of money. For example, spending $10 a day to go out to eat at lunch doesn’t sound like a lot of money. However, that adds up to $3,650 a year. By cutting out unnecessary expenses, you can save money and lower your debt.
Have an Emergency Account
Even if you have a ton of bills and debt to pay each month, you need to make sure you’re still contributing to an emergency fund. You don’t want to have to rack up credit card debt or take out a loan if an emergency occurs. You can start making small contributions every week, such as $5, or automate a percentage to be taken out of your account and transferred to your savings.
Taking these first few steps can make a significant impact on your finances and overall well-being. Having control over your money and spending decisions will positively impact your future. Before you know it, you’ll feel less stressed and more prepared to take on your finances.
Get the Most from Your Tax Returns
When you’re not using a professional program, like ioogo, to simplify your tax refund, you could be missing out on thousands of dollars on your return. If you’re not familiar with tax codes or have a difficult tax situation that leaves you unsure how to properly file, you need to turn to professional software. With ioogo’s services, you can either choose to file it yourself with our easy-to-use software, or work with a professional to ensure you get the most money back on your taxes.