Taking Control of Your Money

Financial independence and peace are not unattainable. For some people, taking care of the finances may seem boring, or something for their spouse to "handle."

The truth is that everyone needs to be financially literate. Learning about finances and taking control of your money involves more than creating a budget. You need to have an understanding your credit score, insurance, investing, estate planning, and more.

Are you looking to become a homeowner? You need to know where you are financially - your income, expenses, savings, as well as know your credit score. Your credit score is one determining factor that helps lenders evaluate your creditworthiness and ability to repay your mortgage loan. Becoming a homeowner is a big responsibility. Your monthly expenses will also include maintenance for your home. If you live in a community with covenants, you will also pay homeowner association (HOA) fees. Whether you purchase a new construction, condo, townhome, or preowned home, something in your home will have to be maintained, repaired and replaced.

Your lifestyle also has an impact on your finances. Are you the person who buys rounds of drinks for others? Are you married, a single parent, empty nester or caring for aging parents? Perhaps you're continuing your education? Or in a long distance relationship, have a pet, or various hobbies? Do you have a health condition that requires frequent trips to the doctor? There is nothing wrong with any of these but knowing that your finances are unique to you. You cannot compare your financial situation to your parent, sibling, friend or coworker. Everyone is different.

Insurance is very important. Some people get insurance on their homes, cars and cell phones but neglect to get life insurance. There are several types of life insurance policies. One fear people have is that life insurance is too expensive. What's more expensive is not having life insurance and leaving your loved ones behind without resources to take care of your final expenses and personal affairs. This can cause an emotional and financial drain on families. It's important to discuss your final wishes with your loved ones and consult with a knowledgeable professional regarding life insurance.

Taking control of your finances is the first step of your journey to financial freedom and living the life you desire.