Of course we all desire to be in control of our personal finances, but there’s times when our finances feel a bit out of control. Perhaps an unexpected bill comes along (like our daycare raising tuition $20/week), or you’ve found yourself overspending in one particular area (eating out in all likelihood). In these times, it’s important to get both your head and your finances back in a good spot.

There are few people in this world who have the luxury of not worrying about money, and most likely if you’re reading this blog, you’re not one of them (I’d hope you’d be on a beach far away if you weren’t worried about money). Ask most people and they will tell you, juggling household finances can be tricky. Making your paycheck last as long as possible as well as covering all your expenses (including social life) can seem like a stretch.

The good news though is, with some careful thought and proactive actions, you can not only make sure everything is paid on time but also, get those bills reduced to allow you to ease some of the pressure.

Write it Down

Make a clear and easy to follow list or even spreadsheet of everything you have coming in. Detail your income from all sources if you have more than one before moving onto your expenses. It’s important to understand how much you’ve got to work with.

Then, this is where you start digging into expenses:

• Start with your essential such as rent, mortgage, utilities and insurance.
• Then look at your food and general expenses eg household products, clothes etc.
• Add in your debts – student loans, car payments, credit cards.
• Move on to your non-essential payments. These will be things such as cable TV, Netflix, gym memberships and so on.
• Include things such as lunch costs for work, travel expenses, pensions etc

This will allow you to see where you are spending your money and exactly how much you are paying for certain things. Anything leftover is what you have left to live on.

Be as honest and thorough as possible and use previous months bank statements to help you get a fuller, more complete picture of the condition of your finances.

Where can you save?

The two ways to improve your finances are: earning more or spending less. Spending less if often easier, and the good news is that there are always ways you can cut back on expenses.

Let’s start with your utilities. Are you paying over the odds for what you use and can another provider give you a better deal? It is worth your while getting different quotes to see if you can save yourself some money on what you are paying. You can also do the same for other expenses such as your cable services, cell phone contracts and insurances.

If you have home, car, life insurances, there may be the opportunity to look at getting a better deal when your renewal comes through. Making sure you get the right coverage you need is essential, so before switching, get the correct details and check the small print. For motor insurance, Metromile insurance covers you on a mile by mile basis. So the less you drive, the lower your premiums. If you use your car less frequently, this could be an ideal way of saving money.

Also check your cable package and go ahead and remove anything you don’t need, or cut the cord altogether. There are so many viable options out there that are affordable (I use YouTubeTV). Go through what you are spending with a fine-tooth comb. Remove anything you do not use – that gym membership is something a lot of people continue to pay for and not use enough to justify the cost.

Focus on what you enjoy, and save elsewhere

As you’re going through your expenses, you’re likely realizing that you’ve got a lot of them. One strategy I find that helps is figuring out what you enjoy spending your money on. Shouldn’t be too hard right? Maybe you really enjoy eating out with friends or shopping or traveling. Once you’ve identified those areas, feel ok about spending your money in those categories, and then cut back on the rest. If you don’t really enjoy Netflix that much compared to going out on Friday night, cancel Netflix! Managing your money is a balancing act, so spend where it makes you happy and don’t where it doesn’t!

Slowly you will find you are getting a handle on your expenses and are in a healthier position!

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