5 ways to Finesse your Finances

Many times we think it is difficult to take control of our finances. You don’t have to be a guru. You simply just have to start somewhere. Discipline is the key to success. If you don’t have discipline it will be hard to reach your goals. So I am going to share 5 simple basic things you need to finesse your finances.

1.) Create income

If you rely on your 9 to 5 to take care of you that is a scary place to be. Earned income is just one type of income we can have. It shouldn’t be the only. For those who may not know, earned income is income you receive while working. Self Employed individuals income is also earned income. Starting a business is only the first step. Its almost like having a 9 to 5 but harder. You simply just own your own job. Creating new streams of income within that business is idea and also finding new streams of income outside of your business is necessary.

2.) Know your expenses

The biggest mistake we make is not knowing how much money we are spending. There was a time I couldn’t afford starbucks but for some reason I was drinking it every day. It wasn’t until I actually calculated how much a $5 drink everyday was costing, that I put a stop to the madness. You would be surprised how much money you can save when you take a look at what you need and what you want. Always know how much you currently spend and how much you plan on spending in the future. Then create streams of income around the lifestyle you want to live. You may have to temporarily cut some things out to create a lifestyle that supports your desires. It’ll be all worth it.

3.) Build your credit

Credit should be used for leverage not for living. Where we go wrong is we use credit for money we don’t have. Utilize your credit line only to build credit for future purchase that you don’t want to pay out of pocket for. Do not abuse your credit. Only buy what you know you can pay within 30 days. Your credit card is not a source of income. So don’t treat it that way. I know it is very tempting, especially when you qualify for it. It’s a trap. Don’t fall for it. Use your credit cards responsibly.

4.) Save your money

You can build wealth by saving alone but I always tell people, saving is a start. Don’t let people talk you out of putting money up for a raining day or putting money up for the future. While you are accumulating your savings, educate yourself in what or how to invest your money.

5.) Repeat

Consistency is the key to success. Set a goal and work your money plans for 21 months. They say it takes 21 days to create a habit. in this case it will take 21 times or 21 months to change your money habits. Imagine if you stuck to a financial plan for 21 months, how much further will you be financially. So remember create income, reduce expenses, build your credit, save, and invest. If you keep those five things in mind and execute them, I have no doubt you will be in another tax bracket by this time next year.


If you currently own your a business or thinking of building your own business consider purchasing my book Financial Finesse. It is an accounting Guide for entrepreneurs.