When life feels out of control and your finances feel like they’re spiraling out of control with it, it can be challenging to stay focused and make positive changes.
Fortunately, getting your financial foundation on solid footing doesn’t have to be difficult.
In fact, it can be easy and feel like second nature if you do it the right way from the get-go.
Keep reading to discover the ways you can get financially healthy and never look back.
Estimate Your Net Worth
One of the best ways to get a handle on your finances is by estimating your net worth.
There are plenty of online calculators that will help you get a rough estimate of your net worth, or you can simply use this method:
- subtract your liabilities (debt, bills, etc.) from your assets (money in savings, investments, etc.)
- divide the result by your equity (all the assets minus all the liabilities)
- that’s your net worth in pennies
Track All Your Money
One of the easiest ways to get a handle on your finances is by tracking all your money.
Start by logging all your spending for a month. You can use a journal, a spreadsheet, or a budgeting app on your phone. After a month, look back and see where you spent the most money and the places it went.
This can give you valuable insight into your spending habits that you may not have realized was there otherwise.