How to Get Your Finances Under Control – Step 2: Set Financial Goals

Step 2

Once you have recognized that your finances are out of control and walked away from the mirror, determined and focused to make a change, the next step to How to Get Your Finances Under Control is to set your financial goals. Goals are like destinations, they define where you are going and where you want to end up. How often do you leave home and not know where you are going? If you are like most people, you have one or more destinations in mind before you even walk out the front door. You know where you are going, and most likely have determined the most efficient route to your destinations in order to not waste time and gas.

Get Your Finances Under Control – Step 1: Recognition

The good news is you already know the first step to getting your finances under control. Recognizing your finances are out of control and choosing to take steps to solve the problem is the first and most critical step of fixing your financial situation.

The ability to effectively manage your finances has little to do with your ability to understand stocks, how to calculate interest rates, understand inflation etc. While these items are helpful, understanding yourself is the most important part. Financial problems are generally related to your behavior and your ability to control it.

Get Your Finances Under Control – One Small Step at a Time

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If you are like millions of people in the US, you:

  • Make $36,764/year
  • Carry more than $8,000 in credit card debt
  • Have 8 credit cards
  • Owe at least one car payment, and most likely two each month
  • Have a mortgage payment that is more than 25% of your income
  • Have 1.3% of your Disposable Income in savings

With these kinds of numbers, chances are you’re living paycheck to paycheck and at the end of month wondering to yourself, where is my money going?

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