Top Strategies for Getting Your Finances Under Control

Do you want to get your finances under control, but you don’t know where to start? Well, you’ve come to the right place!

You’ve decided that you are exhausted with living paycheck to paycheck, but you have no idea where to start. Don’t fret, getting your finances under control can happen with a few simple steps and habit changes.

Maybe the new year is rolling in, maybe you’re trying to buy a new house, or maybe you’re just exhausted by the constant stress of wondering if you’ll make it to payday. Whatever the reason is, I promise that getting your finances under control is NOT nearly as intimidating as it sounds.

So, what are the steps you have to take to start getting your finances under control? Keep reading to find out.

Track your Spending

You’ve heard me say it once, you’ve heard me say it a thousand times. You simply cannot make any meaningful changes until you learn to track your spending.

This is, and always will be, step one.

I know it’s not most people’s idea of fun and I know it’s not something a lot of people are prepared to face, but tracking your spending is absolutely crucial to getting your finances under control.

You cannot make changes until you know where you are starting.

You wouldn’t start a fitness journey without taking your measurements and data before you begin, would you? How would you know how you’ve improved in 3 months if you don’t have the beginning data to compare it to?

Your financial journey is exactly the same.

If you don’t track your spending, you could begin to make changes that have no impact on your overall goal. You might think you have to cut back on groceries, when in reality your highest spending category was clothes shopping.

Now let’s explore exactly how you are supposed to track your spending and where is the best place to do it.

There are apps out there that can be helpful, but I don’t recommend them.

“Why don’t you recommend them Alexis?! They’re so easy!”

You’re right, there are easy. Too easy. You automate the data into the app and then you never look at it again. That’s not helpful because then you’re right back where you started – not paying attention to where and what you’re spending money on.

You need to use a manual finance tracker.

“But Alexis, I don’t know how to make a finance tracker!”

That’s okay, take deep breaths. This is where us data nerds come to the rescue. I’ve already made a completely free finance tracker that you can download and use!

And then, because I’m super nice, I gave you a step-by-step guide on exactly how to use it.

I know that tracking your finances is probably not on your list of things you’re looking forward to at the end of every month, but it is absolutely crucial to getting your finances under control. There is no way around that.

Every new journey begins with step one. As always, step one is usually the most uncomfortable.

Build a Budget

Once you’ve tracked your spending for a few months, you can then set a realistic budget for yourself. My recommendation is to track your spending for a minimum of three months before you start creating a budget.

Trying to build a budget without knowing where you’re starting will leave you frustrated and just sad. If you don’t know what you’re spending, you don’t have anything to base a realistic goal off of.

What is a budget? It’s simply the maximum amount you are going to spend on one category – like groceries, eating out, gas, or clothes.

Using your finance tracker on a daily or weekly basis will let you know how close you are to meeting or exceeding the budget you set for yourself.

If you are concerned with saving, there are several ways to lower your grocery or gas bill.

The most important rule of budgeting is to remember to be realistic. If you have a family of 4 in New York City, it might not be realistic to budget only $50 a week for groceries. However, that same family in New York City could probably budget $50 a month in gas since they usually walk everywhere anyway.

Setting a budget is a great way to force you to stay within a spending limit when you’re working on getting your finances under control.

If you are looking for a more detailed guide on how to build a budget, check out the Single Woman’s Guide to Budgeting.

Automation

I would never recommend automation for tracking your finances, but I will recommend it for savings goals or paying off debt.

If you set up automatic withdraw to entities such as your retirement account, savings account, or monthly payments, then you become accustomed to that money not being available for spending. On top of that, you’re also saving to reach goals without even realizing what you’re doing or having to put a lot of effort into it!

You can talk to your payroll team or your financial institution to set rules for your money. Ask that a certain percentage or a certain amount of your paycheck be moved to a different account.

If you’ve already figured out your budgeting numbers, sit down and add up how much you would need per paycheck to pay your bills and stay within your budgets. Send anything you don’t need directly to another account for safe keeping.

If you are planning to automate to a savings account, I would highly recommend opening a high interest savings account in order to get the most out of your money.

In addition, when you choose to automate to a different account, make sure it is an account you don’t see every day.

OR make sure it is an account to have to work to see. You can talk with your financial institution about hiding your account from you on your banking app or website. You will then have to work a little harder to gain access to it.

This will fall under the “out of sight, out of mind” rule. My ADHD friends understand exactly what I’m talking about. If your account balance is out of sight, then it will easily fall out of your mind.

Automating is great for my visual spenders – those that see the money there and believe that it can be spent. However, automation is not specific to just those people. It is a great tool to anyone who is trying to get their finances under control.

Be Specific

You have to be specific with your goals.

Don’t say “I want to save more money”, say, “I want to save $5,000 by the end of the year” or “I need to save $10,000 for a down payment.” You can also set time limit goals. Such as “I want to pay my car off in a year” or “I want this credit card paid off by my birthday.”

Being specific makes your goals tangible. It gives you something to reach for, while also allowing you to track your progress.

A tangible end goal means you can use data to see how close you are, which is the best type of motivator. It’s like crossing into Florida when you’ve already been driving for 3 days. Your motivation to get there increases the closer you get to Disney World.

Once you have a specific goal, you can move on to the planning phase.

Planning

Reaching a financial goal will not happen without a plan.

Getting your finances under control isn’t a part of your life where you can just “wing it”.

Yeah, I’m talking to you.

Let’s say your goal is to have $5,000 in your savings account by the end of the year. You can’t just manifest that to the universe and hope for the best, you have to plan out how you are going to accomplish that goal.

How much do you have to put in your savings account each month for that to happen? Where are you planning to get that money? Where are you going to make sacrifices and cuts in order for that to happen?

Step one for planning is to sit down to write out your goals. Then, you will have to write out a plan. Making a plan will break down a seemingly impossible task into bite sized chunks.

Let’s take my example of $5000 by the end of the year.

$5,000 / 12 months = $416 a month

$416 a month / 30 days = $14 a day.

$5,000 seems like a lot, $14 does not.

You don’t have to break it down by day, it could be by week or by paycheck. Whatever is easiest for you.

For any aspect of your life, but especially financial goals, writing out the problem and then the solution can help organize your brain enough to get started.

Organize

If planning is the inch, organizing is the mile.

If you’re trying to reach a goal without being organized, you will very quickly become overwhelmed and give up. Ask me how I know. After you’ve written down your goals and your plan, organize your life so that you can achieve it.

Organization can be physical, like spreadsheets or trackers. However, organization of your time is equally as important.

Physical organization can look like:

• Spreadsheets and trackers
• Condensing your bank accounts so that there are less accounts to keep track of
• Primarily using only one or two credit cards
• Filling out a calendar with your bill due dates
• Designation of paychecks towards bills/savings/fun

Organizing your time can look like:

• Setting aside time each month to track your spending
• Setting aside time each month to go over a budget

Trackers are an amazing way to stay organized. (Obviously! That’s the first thing I told you to do).

If you need to track your savings or your debt, check out these savings and debt trackers.

It is important to note that organization looks different for everyone. I am a color-coded spreadsheets nerd, while my boyfriend is a drunk squirrel in traffic. He had to find a system that worked for him because it wasn’t the same as mine. That doesn’t make his system wrong, it just makes it different.

Nobody has to approve of your organization as long as it works for you.

Prioritize

I saved this one for last because it’s the most difficult habit to start, as well as the most difficult one to maintain.

If you are working on getting your finances under control, you absolutely must have a serious talk with yourself, and anyone else involved, about your priorities.

I’ve had several people ask me if I could sit down with them and help them be more financially secure. The first thing I have them do is fill out the free finance tracker. I also ask them at the beginning what their top financial priority is. Is it going out with friends? Or buying good food for their family? Is it travel? Or fixing up their house?

By the end of the session, I tell them what their top priority is based on their spending. More often than not, the answer they tell me and the answer the data gives me do not match up.

I would have loved to get new countertops AND travel to Ireland this year, but it’s not possible. My priority is to travel and see the world, so the countertops will wait.

If your top priority is to fix up your house, then you may have to cut back on the eating out or expensive clothes.

Let me tell you, getting your finances under control does not bode well with keeping up with the Joneses. I know, we’re pretty conditioned that we must be able to keep up with everything and still be okay, financially, physically, and mentally. I hate to be the one to tell you that this is not the case.

Sometimes, setting your priorities means having an uncomfortable conversation with those around you about what is in your budget and what isn’t. We’ve been conditioned to believe that talking about money is quite taboo. It really shouldn’t be. You should be able to look at someone close to you and say “I’m sorry, but I can’t afford that right now.”

If you’re looking for a place to start on that conversation, follow this script from Vivian over at Your Rich BFF.

If you’re looking for some fun and frugal activities to do with friends and family, check out this list from Positively Frugal.

Final Thoughts on Getting Your Finances Under Control

Getting your finances under control isn’t most people’s idea of fun. Much like oil changes and dental cleanings, it’s just one of those areas that is necessary.

It takes planning, organizing, strategy, and a little bit of discipline. But, it’s not impossible.

If can be done and I’ve been a first-hand witness to a lot of people that have turned around their financial habits using these tricks, so I believe that you can too. Dive right in, you’ve got this!

If you have any other questions, please contact me!

Follow me on Instagram, Facebook, or Pinterest to be the first to know about ALL the frugal ways to save money!

Happy Saving everyone!

Related Posts:

• Single Woman’s Guide to Budgeting
• Frugal Living for Beginners
• How to Pick a High Interest Savings Account