7 Tips on How to Take Charge of Your Money

One of the things that you need to learn early on while on the journey to becoming debt free is how to take charge of your money.

I often talk about having a battle mentality when it comes to breaking the shackles.

  • Your budget is your “battle plan”.
  • Your defensive strategy is learning how to cut back on your spending for a period of time.
  • Your offensive strategy is maximizing your income to add “attack power” to your budget and use it to knock out those debts more quickly.
  • Your secret weapon is learning how to find bargains and refusing to pay full price for anything ever again.

When you combine all of these things together they create a serious force to be reckoned with. But they require one thing in order to execute. They require a commander…and great commander’s take charge! That commander is YOU.

7 TIPS TO HELP YOU TAKE CHARGE OF YOUR MONEY


Up to this point, your money has been doing its own thing. It’s been happening TO you. You’ve been compensating with credit to try to make your life continue to function. It hasn’t worked out very well. But now it’s time to turn things around, take charge of your money, and use it to break free!

1. STAY ON TOP OF YOUR BUDGET

Every single month make sure you sit down with your budget. Look at last month’s actual spending and see where you need to make adjustments for the month ahead. Always aim to improve on something from the month before. If you make even the slightest change each and every month you will be surprised on how much you can accomplish in a short period of time! Those little changes and tweaks add up fast.

2. KNOW YOUR PLAN OF ATTACK

Regardless of which payoff method you are using, you need to always keep at the forefront of your mind which debt you are working on and approximately how long it’s going to take to get it paid off.

If you choose to go with a debt settlement option they will let you know up front the approximate amount of time it will take to knock out all of your debt. So any extra money you get each month can be added to either additional debts not included in the settlement, or you can begin some savings and investing for the future. Don’t just sit back and let the settlement do everything for you. Be proactive and work towards the future so you don’t rack up more debt going forward.

3. COMMUNICATE THE PLAN WITH YOUR FAMILYFamily How To Take Charge Of Your Money

Make sure everyone in your household knows what’s going on, especially your co-captain (significant other)! Have regular family meetings to keep everyone on the same page. You’ll be amazed at how excited everyone will get when they know that they are included in these discussions, and know what’s going on.

Don’t forget about the kids! This is a huge problem today. Nobody wants to talk to their kids about money. It’s one of the taboo subjects in most households. The problem with this is that NOBODY is teaching them about finances. The public schools aren’t doing it. Even if they touch on it, they are barely scratching the surface.

Tip: You don’t necessarily need to go into specific dollar amounts with your kids but make sure you include them so they will learn how to take charge of their own finances in the future and avoid a lot of your mistakes. It might be one of the most important things you ever teach them!

4. PUT IT INTO ACTION

Having a plan isn’t enough. YOU are in charge of putting it all into practice and making it happen. Without action, you will never get out of debt.

5. SHARE WHAT YOU ARE DOING WITH THOSE AROUND YOUJohn Quincy Adams How To Take Charge Of Your Money

John Quincy Adams said, “If your actions inspire others to dream more, learn more, do more and become more, you are a leader.” Lead by example. Let others in on what you are doing and how you are breaking free. Not only will this inspire others around you to look at their own financial situations, but knowing that they will ask how your progress is going will add some accountability to keep you on track. You will always want to have a new success story to share with them!

6. ALWAYS BE WILLING TO TAKE ADVICE FROM OTHERS

A great leader isn’t just a person who takes charge and issues directives, but one who takes input from others as well. Whether it’s from your family, your friends, or even your co-workers, always keep an open mind and be willing to learn from other people. You never know where the greatest wisdom will come from and it could be something new that you’ve never even thought of.

7. READ REGULARLY FROM THE EXPERTS

There are many financial experts out there that have some fantastic books and resources on how to manage your finances. I have learned many things from all of these writers. I highly recommend you check out a few of these. Reading just 1 chapter a day will keep you motivated and give you a fresh perspective.

Click here to check out some of the BEST books on personal finance!

What about you? What ways have you found to take charge or your money and financial situation? Leave me a comment below.

10 thoughts on “7 Tips on How to Take Charge of Your Money

  1. delroaustria says:

    It is truly rewarding to read this post. We really have a hard time to control our expenditures everyday.

    The 7 Tips you mentioned sounds reasonable and rational. I will talk to my wife regarding this matter and do a plan for the future of our family.

    You really do a good job. Keep up the good work.

    • Chad says:

      Thank you. It’s really easy to let it go and not stay on top of our finances. Your family will greatly benefit from your plan and your conversation!

  2. Chad,
    Having retired not too long ago, my strategy for being in charge of my money has changed. My income is now a little more than it was before I left the workforce. Some cost are a lot greater, health insurance is one, that my budget took a great hit at first. I like your outline and will look at putting some of these steps in place. What other tips do you have for retired people for managing an income that will not change much in the future.
    John

    • Hi, John. Thanks for the input. That’s great to hear that your income has increased since you left the workforce. The biggest issue that many people come face to face with is the insurance! The last place that I worked I had a retired gentleman working with me who needed to go back to full-time work just for the insurance alone. It was sad to see that he had already poured so much of his life into his career to now have to keep on working. He’s not eligible for Medicare for another few years so right now, he’s stuck.

      The biggest advice I can give to anyone who is retired is to focus on multiple streams of income. Most of the time while you are working it’s all about getting that retirement account setup and getting as much money into that 401(k). But with the volatility in the markets, inflation and some of the surprises that can hit at this stage in the game it quickly becomes apparent that it’s not quite enough to carry it through. So, then retired people try to rely heavily on the social security that’s quickly evaporating.

      I will be going much further in depth with all of this as I continue to research the best ways to build multiple streams of income. But one of the best things you can do is start working for yourself. I see you are already building your foundation to do that doing that with your website. That’s one way. A friend of mine is really heavy into real estate investment (something I plan on learning a LOT about in the coming months). He now has 5 passive streams of income each month. Another option is charitable gift annuities. Check out this article. It’s written by a great financial expert named Dan Celia. He takes a biblical approach (just a heads up) to finances. He has a short .pdf booklet on this very topic. Let me know what you think.

      https://www.financialissues.org/index.cfm?p=cms_detail&content_id=156

  3. Nick says:

    One of the ways that I control my money is to use the “jars” system for money management. I’m sure you’re familiar with it, it’s basically the same as the “envelope” system where you divide your paycheck into separate accounts. Each account has a specific purpose like necessities, charity, education, fun, etc. I think the strongest aspect of it is that it is a system, and as long as I stick to it, I don’t have to worry about money.

    I have to say that I really like your advice on communication with family about money. I think I read that the #1 (or maybe #2) reason for divorces is due to money problems. Like you said, we just aren’t taught how to handle money in school, so if our parents don’t teach us, then we don’t know!

    Why do you think schools are so lacking when it comes to personal financial education?

    • Chad says:

      Thanks for the comments, Nick! Yes I’m very familiar with the envelopes/jars system. It’s a great tool to help manage your money. My wife and I do it with our living expenses. We go to the ATM or the bank and withdrawal the cash we use for our weekly needs (food, gas, etc.). We set an amount for each and it’s really helped us to take notice on what all we spend money on and how easy it is to overspend when you just use the credit or debit cards.

      Communication with the family is critical. I’m doing research on a different article that will heavily expound on working together with your spouse or significant other on the finances. One thing I read that out of the top 10 reasons people are getting divorced, at least 2 of those reasons has to do with the finances.

      As far as the schools, I really wish I knew the answer to that. That’s going to be a project in and of itself.

      I’m learning that high school graduates don’t know anything about it. I’ve talked to a few of them that I know both face to face and over social media. They are clueless. They don’t know how to make change. Try this: order a pizza, have it delivered, hand them cash, and watch what happens… I had one say to me, “So…do you need change back, or something?” They don’t know how to balance a checkbook. One person that I was talking to is ready and eager to move out on his own, yet can’t seem to hold down a job for more than a couple of weeks. I asked him if he’s done a budget to see what he can afford to spend each month on rent, utilities, and basic necessities. (or what could afford if he actually held a steady job). He didn’t have a clue. I started throwing out average rent costs and he immediately freaked out about it. I hadn’t even gotten into the rest of the stuff. Yet, they are being sent out into the world without a clue!

  4. Norman says:

    There are so many ways that a person can get into dept, and the amazing thing is that the majority of person that works seems to fall into this trap because of making the wrong decision and not managing your money the way that you suppose. I love how you share these tips, it is a great break that can help so many people to get back on the right track where they can sleep a little easier. Thanks again for sharing this awesome post.

    • Chad says:

      Thanks, Norman! I’ve been working since I was 16 years old. I’ve also had my first credit card since I was 16, as well. It was a perk that came with the department store that I was working for. Debt has always been a way of life for me and without proper management and understanding…it quickly became out of control and I paid dearly for it. I made many bad decisions along the way before I started to learn from those mistakes. These are just some starter tips to help people get energized and proactive about their money. I’m glad you enjoyed the article. Thanks again for the feedback!

Leave a Reply

Your email address will not be published. Required fields are marked *