Ten steps to financial freedom: Get control of your money

The Motley Fool

Get Control Of Your Money

Graph showing a bad balance of Earnings & Spending
Graph showing a bad balance of Earnings & Spending

Getting control of your money is about spending less than you earn and using the difference to fund savings and investments to get the miracle of compound interest working for you.

You should aim to spend less than you earn each and every month. If you already do this, you're well on your way to gaining control of your money - you just need to get the money you're not spending to start earning interest. Do this by paying yourself first: set up a direct debit into a savings account just after pay day and put that money to work right away so you don't get tempted to spend it elsewhere.

If you don't spend less than you earn, don't worry. Most of us need a little help getting control of our money. In fact, those of us who barely make it from one pay day to the next need to start with basics: budgeting.