Taking Charge of Your Money, Made Easy

Let’s be honest: when it comes to money, most people know the right thing to do, but get discouraged because the progress seems so slow. It feels like you’re just treading water rather than making progress on your financial goals.

Here’s the great news— it doesn’t take a lot of extra effort to see some big changes. If you’re like most people, you know there are some easy wins you could have, but you haven’t prioritized them. Or areas where you’ve been a bit lax simply because you don’t have a clear picture of your finances.

The difference between average money management and great money management is taking charge and being intentional. Not that you’ll do everything perfectly, but that you make it a major priority in your life. That intentionality alone is enough to get you most of the way.

It’s like anything else in life— the average person is just winging it. By prioritizing money management, you instantly set yourself apart. In this article, I’m going to share some dead simple ways to boost your finances. Except, they aren’t just tips, they’re a blueprint for making money management a bigger part of your life.

Create a game plan

If you want to manage your money better, you need a plan. But don’t overcomplicate it— speak with someone you trust to get a lay of the land and then start reading some people who make sense to you. You’ll refine your plan over time, but you need something to get started.

Set some clear priorities

The worst financial mistake you can make is to spend without thinking, but the easiest way to avoid that is to set priorities. You don’t have to sacrifice everything for that mortgage downpayment, or to pay off that loan, but you do have to make it a priority, and put most of your free spending towards it.

Track your expenses

It’s nearly impossible to make progress on your goals if you don’t know how much you’re bringing in and how much you’re spending each month. A simple spreadsheet does the trick, but if you want to get fancy, there are some great apps that do the trick.

Prepare for emergencies

Be honest with yourself— do you or your family have enough saved up to cover an average emergency without going into debt? If not, then you know exactly where you should begin. I know it’s hard to get started, but if you can get some momentum, it quickly becomes a game you want to win.

Grow your savings

One of the smartest financial moves my wife and I made in our early years of marriage was to invest as much as we could into the stock market. This was back when we were both in grad school, not making much money, and had no kids. Looking back, we realize we missed out on a lot of fun trips, but we are reaping those rewards today as we have a larger family to support. You don’t have to give up everything, but smart people know when to play the long game.

Use credit wisely

Credit card debt is like a double-edged sword. If you’re not careful, it will lead you to a dangerous place financially. But used wisely, you can build your credit score, earn rewards, and have some extra layers of fraud protection. When we use our credit cards, we treat them like a debit card— we only spend what’s in our bank account, and always pay the bill in full.

Lower your debt

I’ll be honest, it was a huge weight off my shoulders when we paid off our mortgage. We had already paid off my wife’s student loans from medical school, which was another victory. Imagine your life if you had no debt payments, and the only thing you had to worry about was your daily spending. That kind of financial freedom can lead to all sorts of career choices but also allow room for generosity.

Maximize your earning potential

Not every financial move is about spending less, sometimes it makes more sense to earn more. Taking a promotion with more responsibility, but easier work hours can be a great example of this. Or maybe you find a way to earn a little bit of money on the weekends by doing something you already enjoy. If you’re already doing so much right, the key is finding ways to leverage your skills and gifts.

Review and adjust

There are so many things in life that just require you to be intentional and stay the course, not the least of these being your finances. The best money advice I ever got was from my dad who explained the power of compound interest in a way that finally clicked. The hardest part is getting started, and then sticking with it. Which is why one thing my wife and I do is to review our budget at the end of each month. Knowing we’re going to check in with each other is a powerful motivation to stay on track.

Celebrate your wins

A good coach of mine in high school once told me that one of the hardest things to do in any sport is to have a good practice the day after a big win. It’s human nature to relax and take your foot off the gas when you’re celebrating. But trust me, when you really master this skill, you’ll be able to outwork anyone. By all means, celebrate every win, but then ask yourself, what’s the next step?

Keep learning

The biggest money mistakes I’ve made in my life have probably been from not fully understanding the products I was purchasing. Be careful when it comes to insurance, loans, and other financial instruments— they can all be great in the right context, but expensive for a person who doesn’t know what they’re doing. Keep asking questions and humbly admit when you don’t understand something.