3 strategies to gain control of your money today

With stagnant wage growth in most industries, it’s important to control your money so it doesn’t control you. And one of the best ways to do this is by creating a budget individually, as well as a couple, if you happened to be in a partnership.

These suggestions will help you gain control of your money regardless of what the current status of your relationship with money is;

1. Budget with well-being in mind

It’s been an isolating year. Many people have been spending most of their time indoors with no separation between work life and home life.

To combat the monotony, you should review your budget and reflect on how much you have been earning, spending, saving. Of course, make sure you’re paying your bills and setting money aside in an emergency fund, but also check whether you’re making room for your well-being.

If you need to continue to spend money on the things that will make you happy, whether it’s a daily coffee or buying a new piece of clothing once a month, give yourself permission to spend within reason.

This happiness spend does need to be incorporated in to your budget, and you should never be feeling guilty about something that makes you happy, because if that is something that you can look forward to and keep things positive. Life is more than just pinching pennies sometimes.

2. Reflect on past financial decisions

Personal finance isn’t just a numbers game. There are a host of psychological factors that influence a person’s behaviours and attitudes around money.

To understand your own mindset and how it might be helping or hindering your ability to control your money, reflect on your recent significant purchasing decisions.

What was that event? How did you feel about it? Did it make you uncomfortable? Did it align with what you want to do? What you aspire to do? How did you feel about that? And then, what would you have done differently? What would you like to do differently?”

These questions could reveal some raw emotion, but that’s the point. In order to adjust your habits or mindset, you have to be honest about your status quo.

3. Resist comparing yourself to others

Comparing yourself to others is part of human nature, and it’s been made even easier with the advent of social media.

We see people we haven’t even met before doing crazy things, like who the heck is travelling to Greece during the pandemic? I would love to know and meet you and maybe get on your private jet. But this is just not a reality.

When you don’t know what someone’s financial situation is like behind the photo, you’re only doing yourself a disservice if you compare it to your situation.

You have to define your own goals, because we all know what makes us happy. You have to start to align your money to your values, to the things that make you happy. That can be at least an important first step in trying to not compare yourself too much to others.

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This article via Master Your Money does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.