Money is weaved into almost every aspect of our lives. If you are in control of your finances, you have the capability to be more intentional with your life. You are able to do things that you dream to do. Get in control of your finances to live the life you want.
Money is the foundation of our daily lives. We get an education in order to learn and obtain a career to essentially make money. We require money to have a home and to buy food. Money is needed to have a family and raise children. Without money and more commonly if you are not in control of your money – life is difficult. Bottom line.
If you don’t have control of your finances, life can be stressful. Some can be drowning in debt, marriages fall apart because of uncontrolled finances, some may not be able to afford to buy a home for their family, send their kids to post-secondary school, or be able to afford medical care.
You may ask what do you mean by “take control of your finances?” It means you know how much money is coming in every month. You know how to control your spending, minimizing and/or eliminating debt and saving for the future. You have money goals and you have a plan.
Here are 5 reasons why you need to take control of your finances:
1. Life can be short
It starts with a child learning how to hold a pencil. Essentially from this moment, it’s a long educational journey with the ultimate goal of obtaining a job. Why do we work? We work to make money to live and survive comfortably. Technically, you can work for the rest of your life until the day you die, but many prefer not to.
Our time is limited on Earth, so let’s make the best of it. If you have control of your finances, if you understand what is coming in and going out, you work towards early retirement.
You can ultimately spend less of your life working and spending more time doing the things you love and with the people you love.
Related Post: Want to Retire Early? Check out these Personal Finance Tips
2. You don’t need to depend on others financially
Take responsibility and save up money for what you need, for what you want and for your retirement. It’s understandable that you may need to take a mortgage out for a home. Be smart about debt and pay it off as soon as you can. You can save up money before purchasing larger expenses such as cars or vacations. You can help your children by saving money for their education.
Don’t solely depend on the government for retirement money when there is always government instability and potential economical recessions.
3. Be able to deal with emergencies or unforeseen circumstances
Life ALWAYS throws a wrench in your finances. Whether a kitchen appliance dies, a child needs braces, dealing with job loss, a medical issue arises, a car accident, divorce, or simply if your child throws a rock through your window – you need to be prepared for these unforeseen expenses.
Avoid debt by being financially prepared with an emergency fund and sinking funds.
Related Post: What You Need to Know About Sinking Funds
4. To provide for your family
Taking care of others besides yourself is a great reason why you should aim for financial stability. Bringing babies into this world is a privilege. It is much easier to raise them to be healthy and good people if you have a solid financial foundation.
In addition, you are able to take care of your parents and be able to donate money to causes or charities that are important to you.
Ultimately, more money allows more doors and opportunities to be opened for your family.
Related Post: How to Financially Prepare for a Baby
5. To be able to follow your dreams
Having financial stability may allow you to follow achieve your dreams and to live the life you deserve. You want to cross things off your bucket list.
Being in debt or not having the funds may make it harder to reach your dreams and goals. It may be harder to do the things that are important to you and that you want to do. Wouldn’t it be amazing if you woke up and looked forward to your day – every single day?
Related Post: Setting Goals to Live the Life You Deserve
PIN FOR LATER
You may also like:
Other posts from the FINANCE section
[…] in Less Than 10 Years How to Use a Spreadsheet to Manage Your Money Calculate Your Net Worth 5 Reasons Why You Need to Take Control of your Finances 0 0 votes Article […]
[…] Budgeting Tips for the New Year 5 Reasons Why You Need to Take Control of your Finances How to Manage Your Personal Finances During a […]
[…] a budget is a prerequisite when you’re making a financial plan. It has to be realistic so that you can follow it without much […]
I totally agree with your points. It is so basic yet so forgotten WHY it is important to be mindful and educated about how we handle our money! We work hard and exchange our lives for it, only to ‘waste’ it or not have it when we need it.
Knowing where our money goes and how to make more simply allows real freedom.
omg Barbara! I agree with your thoughts 100%!! People work so hard for money and yet they squander it away on useless things. Control our finances is so important to allow real freedom (Like what you said 🙂
Nice piece of information
Thank you!
I love this list. I’m going to pin this as motivation for staying on track with out budget to help us reach our financial goals!
Thanks Jills! Good luck with your financial goals