5 Tips for Gaining Control of Your Finances

Organizing your finances can often feel like a daunting task, but it doesn’t have to be as complicated as you think. Consider these five financial tips listed below to help set yourself up for a more financially stable future.

Define Monthly Budget

Defining and sticking to a monthly budget is one of the first steps in gaining better control over your finances. When creating your budget, it is important to make sure that you include any savings, investments, and costs related to things like clothing, food, and entertainment. It will not only help you realize how much you spend each month, but it will also help direct your focus to areas that may need improvement.

Take Control of Your Debt

Debt is a significant roadblock that prevents lots of people from becoming financially independent. In 2023, the average total debt balance has reached $104,215 per adult.¹ This number consists of debt such as credit cards, mortgages, and personal, student, and auto loans. When creating a plan to tackle your debt, it's important to pay off your high-interest debt, like credit cards, first.

Create an Emergency Fund

Medical bills, vehicle repairs, job layoffs, and house maintenance are examples of unforeseeable expenses that can quickly derail any budget. Setting up an emergency plan allows you to specifically deal with these expenses without having to alter your monthly budget. A good rule of thumb for an emergency fund involves saving anywhere between three and six months’ worth of living expenses.

Prioritize Retirement Savings

The sooner you begin saving for retirement, the more time these savings will have to grow through compound interest. Even small contributions can grow significantly and give you a better return on your investment. If you’re looking to expand your options but are not sure how, consider working with a financial advisor who can provide personalized investment strategies.

Create a Long-Term Financial Plan

Goals can be difficult to envision and stick to when you don’t see the immediate benefits. If your long-term goal is to buy a house or retire at a certain age, consider drafting out a plan that includes saving, investing, and any other ways to build the wealth you need to achieve your goals. Ultimately, having a plan in place will help you stay on track and help guide your future financial decisions.

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This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

5 Tips for Gaining Control of Your Finances | Important Information from Our Financial Advisors