Take Charge of Your Finances With These Simple Strategies

While it can be easy to let your finances get a little neglected, and possibly even a touch out of control, it seems much harder to reclaim control over them. It is a completely attainable goal, though. With a bit of careful planning and these simple strategies, you'll be able to take control of your finances in no time at all.

Check Your Credit Report

This is the first step to take, and one that should be done regularly. So, before you even look at bills or income, get a copy of your credit report. You can order one for free every year from each of the major bureaus, so spread them out and check for errors every few months. This will help you keep on top of any potential identity theft issues before they spiral out of control.

Start by looking at the basic information: name, address, and employer. If they aren't current, request them to be updated. Then go back further and look at your history for them to verify everything checks out.

Then look at recent inquiries into your credit. Did you request them, or is someone looking at opening accounts in your name?

Finally, check the accounts section. Make sure you recognize them all. If there are any anomalies, contact the credit bureau immediately and let them know.

Know Your Actual Earnings

Continue with your financial planning prep work by getting a realistic picture of your income. Count all sources that you reliably receive money from: employers, contract work, interest, and dividends are a few examples. It can be surprising to get a clear picture of how much (or little) you actually earn when everything is counted together.

Create a Budget

You'll need to have a few things on hand and accessible when you are preparing your budget. Start by gathering this information together:

• Figures for annual, monthly, and weekly income
• Regular household bills (rent/mortgage, utilities, vehicles, insurance, etc.)
• Other debt payments (student loans, credit cards, medical bills, etc.)
• Costs for regular activities and purchases

Next, separate everything down into three categories: need, want, and can easily live without. Use your best judgment on this. You might be able to swap a travel mug for stopping at the coffee shop every morning on your way to work, while the idea of giving up your gym membership leaves you in a panic. Using a spreadsheet or budget template can help you get everything organized and ready for analysis.

List the monthly costs for everything considered a need and compare them to your income. Hopefully, they come in well under the total. Now, start adding in wants, being careful not to go over your actual income. In fact, if you can leave some extra room for saving, you'll be in better shape going forward. Make a commitment to get rid of the things that you are paying for but could easily live without.

Pay Down Debt

Now that you know how much extra income you have each month, it is time to start paying down debt. If you need to see progress to stay on track, try using the debt snowball method. Pick your smallest balance and make extra payments toward it each month. Once you pay it off, move on to the next one. You can check them off your list and budget as you make progress.

Start a Saving Plan

Now that you are back in control of your finances and working toward getting rid of your debt, it is time to start putting money away. Start with an emergency fund. It can be a useful tool so you don't end up accumulating more debt down the road. Work up to a vacation or rainy day fund that you can use for those extras that you really like to have. Crediful can help you find accounts to maximize your savings potential.

Enjoy Your Financial Health

Be sure to take a minute to congratulate yourself on your success and enjoy your financial health. You'll be better prepared to handle unexpected emergencies, save for the future, and enjoy the things that matter most to you in life.