Five Steps To Regaining Control Of Your Finances

Regaining Control Of Your Finances… If you read the social media updates or watch TV, you can’t help but think that all households are in big debt. With most national economies struggling to expand, we realize that more and more individuals and households are drowning in rising debt.

Five Steps To Regaining Control Of Your FinancesSome people are just paying the monthly minimum deposit, but keep on using their credit card. The result is that the debt just keeps growing and growing and every time a larger portion of their wage is being used to service their credit card debt. These people want a clear route toward financial freedom, a place where they will regain control of their finances, instead of their debt controlling them.

The problem so many of these people have is that they want very badly to gain control of their finances, but they lack the motivation to keep on track. And it takes a lot of motivation to keep your finances in control and stop being a slave to your debt.

Those people that are in need for motivation and practical tips will find this article useful. Here we talk about the five steps to financial freedom, steps by which you can seize control of your finances. These steps are based upon the model for self-motivation. The five steps will serve the dual purpose of not only helping you get back on track, but also keeping you motivated to stay on track.

5 Steps To Regaining Control Of Your Finances

Step One

Find resources that will help you make this change. The worse the economy gets, it seems, the more resources there are for those who need help getting back on their feet. Here are three:

1. Credit counseling is a big resource, but make sure you do your research. Check out the Federal Trade Commission’s website for what you need to know before you retain a credit counseling company.

2. The federal government can be of assistance. Go to and type into the search screen “debt relief” for information and direct assistance.

3. If you are facing foreclosure, contact your state’s bar association for the names of attorneys who have volunteered to assist people with your problem.

Take advantage of these and other resources in your social environment, the third factor in the model for self-motivation. These resources can be a big help in making your dream come true.

Step Two

The second thing you need to do is to understand why you want to seize control of your finances. The more valuable a goal is, the more likely you are to achieve it.

So write down all the positive reasons for why you want to regain control of your finances. What will you gain? reduced stress? the ability to buy things you need? a feeling of pride at how responsible you are? Also write down what will happen if you fail to make this change. Will you have to file bankruptcy? Will you lose your house? Will you be miserable and depressed and disappointed in yourself?

Step Three

Determine exactly what regaining control of your finances means in your situation. Clarity is motivating, so the clearer you are on exactly what you are moving toward, the more likely you are to get there. Here are some issues you need to get clarity on:

How will you know when you have regained control of your finances? Does it mean reducing your debt? Does it mean living below your means so you can be paying off your debt? Write down what will be occurring in your life when you have succeeded. Every success you have will motivate you even more to achieve another success.

Step Four

Write down a clear description of how you are going to make this change happen. Make a plan. Write down all the steps you can think of that will help you make this change.

Will you cut up your credit cards? Will you track your spending for a certain period of time? How long? Will you make a budget? Will you set aside a set percent of each pay check to use toward your debt? Will you need to take an additional, part time job for a while to catch up on your debt? Will you contact your creditors to try to work out a payment plan? Step Three provides two very important motivational impacts.

Clarity, as we saw in Step Two, is motivating. But also, a big goal, like gaining control of your finances, is less scary when it is broken down into its component tasks. The less scary something is, the more confident you will be that you can succeed. Nothing is more motivating than confidence in your competence. That’s why it’s factor number two in the model for self-motivation.

And last, but by no means least:

Step Five

Be in charge. Suze Orman says in The 9 Steps to Financial Freedom, “True financial freedom is not only having money, but having power over that money as well.”

Make a conscious decision that you control your financial life. You are the boss! Power is motivating. Acting intentionally is motivating. Being a helpless victim of the economy is NOT motivating. Take charge and you will stay in charge.


Gaining control of your finances can be a struggle, depending on how deep in debt you are and how motivated you feel to turn things around. By applying these five steps, and working hard, it’s a struggle you can win. You will also need to have the positive empowerment by your friends and family if you want to achieve your goals faster. Having understanding and support from your spouse while you try to reduce the debt of your household will be a great advantage.