20 Ways to Take Control of Your Finances

Whether you’re struggling with debt, earning just enough to cover your expenses, or aiming to save for a major goal like buying a home or investing, taking control of your finances is crucial. Implement these strategies to start managing your money smarter today.

01 of 20 – Read Personal Finance Books

Educating yourself about money can empower you to make lasting financial changes. Financial books offer expert advice on topics ranging from debt reduction to investment strategies. Start with highly recommended titles on budgeting, saving, and wealth building.

To save money while learning, consider buying used finance books online, borrowing from your local library, or listening to audiobooks for convenience. Regularly reading financial content will expand your knowledge and strengthen your money management skills.

02 of 20 – Start Budgeting

Creating a budget is one of the most effective ways to take control of your finances. Begin by listing your monthly income and all expenses. Subtract your expenses from your income to see how much discretionary money you have.

Set a budget at the beginning of each month to allocate your funds wisely. Track your spending throughout the month and evaluate whether you stuck to your plan. If you overspend, adjust by cutting unnecessary costs or finding ways to increase income. Following a consistent budgeting routine helps you live within your means and reach financial goals faster.

03 of 20 – Reduce Monthly Bills

Lowering your monthly expenses is a simple and practical way to improve your financial situation. While fixed costs like rent or car payments are harder to cut, you can reduce variable expenses, such as groceries, entertainment, or utilities.

Try strategies like conserving energy to reduce electricity bills, switching providers for insurance, or shopping at discount and bulk stores. Small, consistent changes in your spending habits can free up money for savings, debt repayment, or investments.

04 of 20 – Cut Your Cable Bill

Looking to save hundreds of dollars each month? Eliminating or reducing your cable subscription is an easy way to cut monthly expenses.

You don’t have to give up entertainment altogether. “Cutting the cord” by switching to affordable streaming services like Netflix, Hulu, or Disney+ allows you to watch your favorite shows without paying for expensive cable packages.

If you prefer to keep cable, consider downgrading to a smaller package with fewer channels. Even small changes like this can significantly reduce your monthly bills and free up money for savings or debt repayment.

05 of 20 – Reduce Eating Out

One of the quickest ways to take control of variable expenses is to curb dining out. While the occasional restaurant meal is fine, consistently eating out can drain your budget.

Start gradually: cook at home one night a week, then bring lunch to work instead of buying it daily. Over time, these changes can save thousands of dollars per year—potentially $1,300 annually and over $50,000 across a 40-year career. Small daily choices add up to major financial benefits.

06 of 20 – Plan a Monthly Menu

Meal planning is a practical strategy to save money and reduce food waste. By planning a monthly menu, you can batch-cook, use all ingredients efficiently, and streamline grocery shopping.

For added convenience, consider menu-planning services like eMeals or PlateJoy, which provide recipes and ingredient lists ready for pickup. Be mindful of subscription costs, and ensure the service aligns with your overall budget before committing.

07 of 20 – Pay Off Your Debt

Eliminating debt is one of the fastest ways to regain control over your financial future. High-interest debt, especially from credit cards, can drain your resources and limit opportunities for savings or investments.

Start by listing all debts—credit cards, student loans, car loans—and note the minimum payments required. Paying only the minimum slows progress, so evaluate your budget and allocate extra funds toward debt repayment.

Reduce interest rates where possible: negotiate with lenders, consolidate debts, or transfer high-interest balances to lower-rate cards. Establish a clear debt-payment plan and adopt disciplined spending habits to eliminate debt efficiently.

08 of 20 – Stop Using Credit Cards

Over-reliance on credit cards can trap you in a cycle of debt, limiting your ability to save, invest, or meet financial goals. To take control, reduce or eliminate credit card usage.

Switch to cash or debit for discretionary spending, or set up a dedicated short-term savings account for planned large expenses. Leaving your credit card at home can help resist temptation. Coupled with a budget, this strategy prevents new debt from accumulating.

09 of 20 – Manage Your Student Loans

Student loans can affect your financial freedom for years if not managed strategically. Take proactive steps: refinance or consolidate loans, explore forgiveness programs, or integrate them into your debt-repayment plan.

Small adjustments can make a big difference. For example, paying half your monthly student loan every two weeks results in one extra payment per year. Some lenders even offer slight interest rate reductions for setting up automatic payments, helping you save over time.

Note: The American Rescue Plan makes forgiven student loan debt tax-free through the end of 2025, providing a strategic opportunity to reduce your financial burden.

10 of 20 – Start Saving Each Week

Pay yourself first and make saving a non-negotiable habit. Consistent saving, even in small amounts, builds financial security over time.

Open an interest-bearing savings account and automate deposits on a regular schedule—weekly, monthly, or per paycheck. Use funds from leftover grocery budgets, tax refunds, or a portion of your income allocated in your budget.

Gradually increase your contributions over time. Even modest savings compound into significant wealth over the long term, providing a solid foundation for financial goals.

11 of 20 – Go on a Spending Fast

Reset your spending habits and accelerate savings with a spending fast. This involves pausing all discretionary purchases for a set period—commonly a month—while continuing essential spending like food, transportation, and recurring bills.

Living minimally for a short time helps you evaluate true needs versus wants, curb impulse spending, and boost your checking account. Beyond immediate savings, this strategy often fosters long-term financial discipline and a healthier relationship with money.

12 of 20 – Set Up a Financial Plan

Take control of your financial future by creating a long-term financial plan. Unlike a budget, which manages short-term weekly or monthly cash flow, a financial plan maps out major life milestones over 10, 20, or 30 years.

A robust financial plan prioritizes goals such as buying a home, funding children’s education, and saving for retirement. Budgets and financial plans work together: your budget helps you manage day-to-day expenses, while your financial plan ensures you stay on track for long-term objectives. Focus on one or two key goals at a time to maximize success and maintain clarity.

13 of 20 – Set Realistic Goals

Financial goals give direction to your savings and investment efforts. Whether you’re aiming to purchase a home, pay down debt, or grow your retirement fund, goals provide motivation and measurable benchmarks.

Set achievable targets based on your income and obligations. For instance, paying off $40,000 in a year on a $30,000 salary is unrealistic and can lead to discouragement. Track progress over time using tools from brokerage accounts or personal finance apps, ensuring you stay accountable and adjust as needed.

14 of 20 – Become an Investor

Investing is a powerful way to build wealth passively. Beyond earning money through work, investing allows your savings to grow over time via stocks, bonds, mutual funds, real estate, and other financial instruments. Historically, the stock market has delivered an average annual return of around 10% (6–7% after adjusting for inflation), making it a key strategy for long-term growth.

Start small if investing feels intimidating: enroll in beginner investing courses, consult a financial advisor, or learn from experienced friends or family. Diversify across asset classes to maximize returns while managing risk, and invest consistently to harness the power of compounding.

15 of 20 – Protect Your Savings

Building savings is only half the battle—protecting it is equally important. Avoid dipping into funds impulsively or to cover budget shortfalls.

Consider placing savings in less-accessible accounts, such as certificates of deposit (CDs) or online banks, to reduce temptation. Establish a separate emergency fund to cover unexpected expenses, keeping it distinct from your primary checking account. These strategies safeguard your savings and ensure they grow uninterrupted toward your financial goals.

16 of 20 – Increase Retirement Savings

Securing your future starts with boosting your retirement contributions. Begin saving as early as your first job, especially if your employer offers a 401(k) match—this is essentially free money. Even if you’re paying off debt, contribute enough to get the full match to maximize your benefits.

The amount to save depends on your age. If you’re in your 20s, aim for 10–15% of your income. If you’re starting in your 40s, consider contributing up to 35% to catch up. Early, consistent contributions take advantage of compounding interest, giving you financial security in retirement.

17 of 20 – Find Additional Sources of Income

Sometimes financial struggles are about income, not spending. If you’re budgeting carefully and still struggling to make ends meet, explore ways to earn more. This could mean seeking a higher-paying job, freelancing, or creating passive income streams like rental properties.

Diversifying income sources provides greater stability, especially for single-income households. Additional income can accelerate debt repayment, boost savings, and help you reach long-term financial goals faster.

18 of 20 – Improve Your Job Skills

Your earning potential and financial security are closely tied to your job skills. Staying competitive in the workforce ensures a stable income and future growth opportunities.

Invest in yourself through certifications, professional training, or advanced degrees to qualify for higher-paying, more stable positions. Upgrading your skills not only protects your current paycheck but also increases your ability to grow wealth over time.

19 of 20 – Get the Right Insurance

Protect your finances by having appropriate insurance coverage. Key policies include health insurance, life insurance, car insurance, and renter’s or homeowner’s insurance.

While it may be tempting to minimize insurance costs, underinsuring can leave you exposed to financial disasters. Proper coverage safeguards you against unexpected events like medical emergencies, accidents, or property loss, keeping your financial goals on track.

20 of 20 – Maximize Employee Benefits

Employee benefits go beyond salary. Take advantage of offerings like dental and vision insurance, flexible spending accounts, and retirement contributions.

Not all benefits may suit your personal situation, but wisely using them can save money and reduce out-of-pocket expenses. Review your options each year to ensure you’re optimizing the full value of your benefits package.

Frequently Asked Questions (FAQs)

Who can help me with my finances?

A certified financial planner (CFP) can assist with long-term planning and wealth management. If you’re struggling with debt or budgeting, a certified financial counselor can create a tailored plan. The National Foundation for Credit Counseling (NFCC) connects you with reputable, nonprofit financial counselors in your area.

What is the 50/20/30 budget rule?

This method suggests allocating 50% of income to needs, 20% to wants, and 30% to savings and investments, creating a balanced approach to spending and saving.

How can I pay down debt faster?

Debt reduction strategies include the snowball method, where you pay off the smallest balances first, and the avalanche method, which targets debts with the highest interest rates. Consistency and disciplined repayment accelerate progress.

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Tags:

Personal Finance Tips, Budgeting and Money Management, Debt Reduction Strategies, Saving and Investing Advice