July 20, 2016
Written by: Kristin Gross, Asset Building Coach at La Casa de Esperanza
Do you ever feel like you spend money but at the end of the month you’re not really sure where it goes? Do you ever feel like your money controls you instead of the other way around?
Follow these four simple tips and start taking control of your finances, before they start controlling you.
#1 Calculate Your Expenses.
There’s no way you can change your spending habits without knowing exactly where your money is going. Everyone knows how much their mortgage and car payment is, but spending leaks (impulse buys here and there) can quickly add up and wreak havoc on your finances. Pull up the last couple months of bank statements online and categorize your spending. Then ADD UP EACH CATEGORY. You may be surprised you’ll find your spending extra money on things you don’t really need.
#2 Trim Extra Expenses.
Now that you know where your money is going, look at where you can cut back. If you’re spending $50 a month at the coffee shop, cut back and splurge once a week or switch to making coffee at home. Most importantly evaluate which expenses are “needs” versus “wants.” This can give you the extra push to cut out extra expenses and start saving money.
#3 Create an Emergency Fund.
Don’t forget to leave room to pay yourself. You will be amazed at the security you feel by just having $500-$1000 set aside for an emergency expense. All of a sudden an unexpected house repair, car expense or medical bill goes from a money crisis to a minor inconvenience.
#4 Create a goal and stick to it.
Would you like to save up for a family vacation? Pay off your credit cards? We all have things we would like to do, so make a plan, write it down and be diligent. It will take some dedication on your part, but the reward is well worth it.
Kristin Gross is an Asset Building Coach for the Financial Stability Initiative at La Casa de Esperanza, in Waukesha, Wisconsin. The Financial Stability Initiative is a partnership between La Casa de Esperanza and the United Way of Greater Milwaukee & Waukesha County. Kristin has her Bachelor’s degree in Personal Finance from the University of Wisconsin – Madison. She is a financial coach and educator working with individuals and families on obtaining tools for financial capability by meeting basic needs, building savings and gaining assets. She enjoys sharing her knowledge of personal finances to positively impact the lives of others.