NOTE: This is a part of a new series of articles about money and stress, which has been a big concern for readers here. For more help on the subject of bringing more money into your life, using the Law of Attraction and EFT, read 10-Day Money Makeover.
When it comes to stress, there’s almost nothing more difficult than managing finances. Many people feel like they’re swimming in debt and that their finances are out of control. This can lead to the breakup of a marriage, depression, and even serious health problems. When you manage your money, you also manage your stress levels and improve your quality of life.
The very first step is to make the decision to manage your money instead of letting it manage you. Many people feel helpless when it comes to money. They don’t know how much they have, how much they spend, or how to use money to their own advantage. But when you take control of your money, you improve your life exponentially.
Start by tracking your spending. That means writing down every penny you spend. Even if you’re spending 50 cents on a newspaper, write it down. After a month, you can really get a picture of where you’re money is going. At this point, you may find out that you’re spending too much money in one area of your life and not enough in another.
For example, many people are spending money on clothing and entertainment, but only paying the minimum balance on a high interest credit card. You need to start by looking at the cold, hard truth of how you spend your money. You also need to track all of your income. You may have a paycheck from a single employer, or you may have other streams of income you need to understand.
After you know how much money you bring in and how much goes out, it’s time to trim expenses or make more money so that you bring in more than you spend. That’s the bottom line. When you spend more than you make, you end up in debt. And while that may not seem like a big deal, debt makes you a slave to a company or another person.
Finally, you need to do all you can to learn how money works and how you can improve your wealth. You can read books (free from the library), watch financial experts on television, and even take classes at your local college or community center on managing money.
When you begin to make your money work for you by saving, investing, and planning for retirement, your stress levels will decrease. You also will feel empowered as you get out from under any debt you have accumulated such as credit cards, auto loans, and even your home.