When managing money and working towards financial goals, it’s helpful to know what we can and cannot control.

We can’t control things like interest rates, inflation, or how the stock market performs. But there are many things we can control – these are our “financial levers” that we can adjust to improve our money situation.

Let’s look at the different ways we can take control of our finances.

Spending Less

One of the most important things we can control is how much we spend. It’s easy to start spending more when we earn more money, but keeping our expenses in check is crucial. By being careful with our spending and living within our means, we can save and invest more.

Earning More

We can also work on increasing how much money we make. This could be through getting a promotion at work, starting a side business, or finding new ways to earn. When we make more money, we have more opportunities to save and invest, which helps build our financial security.

Saving and Investing

Putting more money into savings and investments is another powerful way to improve our finances. Setting up automatic savings and treating saving like a regular bill can help. The earlier and more consistently we invest, the better chance our money has to grow over time.

Making Smart Investment Choices

While we can’t control how the market performs, we can make smart choices about where we put our money. This means spreading our investments across different areas and choosing investments that match our long-term goals.

Planning Retirement

When we retire is another choice we can control. Some people might work longer to save more, while others might retire early if they’ve saved enough. The key is to think carefully about what works best for our situation.

Avoiding Money Mistakes

Learning about common financial mistakes and how to avoid them is important. By making informed decisions and learning from others’ experiences, we can protect our money and make better choices.

Housing Decisions

Our choice of housing can greatly affect our finances. Moving to a smaller home or a less expensive area can free up money for other things. It’s worth thinking about whether our current housing situation helps or hurts our financial goals.

Taking Control of Your Money

These different ways of controlling our money can add up to make a big difference over time.

Working with a financial advisor can help you figure out the best way to use these different options for your situation. Understanding these choices and getting professional help when needed can help you reach your financial goals.