Then I realized, oh no, I didn't have enough savings to last me a year!  That was the time I slowly spiraled down with my financials.  I started to max out my credit cards and even pawned and sold some of my jewels to get by.  It took me more than a decade to bounce back.  Fast forward to today, I'm debt-free, I run my own service-based business, I have life insurances, small investments, and I also have savings.  

I don't want you to make the same mistake so I'm sharing what I've learned when it comes to controlling your finances.

5 Ways To Control Your Finances.

1. Know your financial situation.  It helps to know where you are in your financial state.  This way you'll know if you're financially healthy or leaning on the danger side.  Knowing what you have, what you'll receive, and what you're actually spending on, will help you plan better moving forward.  You cannot move forward without knowing where you are at, plain and simple.
2. Live within your means.  There may seasons in our lives that we'll earn bonuses or get big clients or luckily win the lottery (which happens very rarely).  Let's make it simpler, you may also be promoted and your salary was adjusted to a higher range.  Good for you, but that doesn't mean you also have to immediately level up your lifestyle.  Living within your means doesn't mean you have to deprive yourselves of nice things in life  It just practically means not drastically changing the kind of lifestyle that will force you to spend more that may be hard to sustain and maintain.  Living within your means will actually gear you up for savings and even investments along the way.
3. Create multiple income streams.  You may be employed or have a business, but you can actually earn extra on the side.  It's almost the same analogy for investment when you hear them say not to put all your eggs in one basket.  Let's say you have a job, the earnings you take home from your regular job may be allotted for your living expenses and also bills to pay.  The money you get from your side projects or gigs may go to your savings or investments which will eventually create another stream of income.  This is what it means when they say work smarter.
4. Save and set up an emergency fund.  Make it a habit to save at least 20% of your income whether it comes from just one source or your multiple income streams.  With your savings build your emergency fund that is equivalent to 6 months of your monthly living expenses.  We're not really sure of what tomorrow may bring.  It's always best to be prepared than to be caught off guard and be left with nothing.  As shared earlier, I've been through that phase of life when unexpected circumstances happened and I wasn't prepared financially.  It was ugly and I don't want that to happen to anyone.
5. Pay All Debts - How?  When you do the first four steps above, it’ll be easier to start paying debts.  Personally, what worked for me was first multiplying my income streams then saving money.  It helped a lot that I know my financial standing in life and living within my means, this means MORE SAVINGS for finishing off my debts.  If you have debts, don’t worry, you’re not alone.  It may be hard at first, but with discipline and financial literacy, you’ll be proud of yourself for paying all your debts and claim in time that you’re living a debt-free life! 

Achieving a debt-free life is something I am passionate about.  It took me two decades to finally learn from my mistakes, "man-up" and face my debts.  But that time I was 100% ready to pay off everything.  It took me years to save up extra earnings from my many sources of income to be able to pay every single debt I incurred over many years.  One source of encouragement was this website I kept on checking for advice and tips.  Click HERE to learn more about debt consolidation, getting out of debt, and financial literacy as well.  

Having debts is not always a result of reckless or impulsive spending.  Usually, it's because a person lost a job, a single mom needed financial aid to support her child or a dad needs to send his kids to school.  We all have some story to tell.  But let us take control over our finances before it controls us.  I hope these tips help you manage your finances better.