"I want to feel good about my finances, but … how do I take back control?"

Taking back control of your finances takes some time and discipline, but once started on the right path it will get easier.

Step 1: Understand where you are, and where you want to be. Take the Financial Cardio, Flexibility and Balance tests. Once you have the numbers, set a personal financial goal. It doesn’t matter what it is – it is your personal goal and its purpose is to keep your eyes on the prize. To take your Financial Fitness tests, go to mycreditunion.ca and click on the Get Financially Fit icon.

Step 2: Track your money – every single penny of it. Use the Go Figure Family Budget Calculator on our website to develop your budget or update the one you have. Track your money in a spreadsheet, your cheque book register or by using an online system like Quicken. Compare it to your budget and see where you are either over or underspending. To access the Go Figure tool go to mycreditunion.ca, click on Member Tools, then The Go Figure Financial Resource Center Calculators and then Family Budget links.

Step 3: Review all of your accounts. Look at all of your credit cards, call the providers and ask for a lower rate. Where possible renegotiate your personal or mortgage loans. Audit your utility, cell phone and cable bills. Are you paying for services/plans /channels you are not using? Likewise, check your insurance coverage. Do you have duplicate coverage? Check your investment accounts – are you maximizing your portfolio? Check in with your investment or financial planner for a review. What about your chequing account? Make sure you are in the account which fits your spending habits. Understand where you can save on service fees.

Step 4: Start your emergency fund. Take the Financial Agility test to understand what you need to be saving.

Step 5: Get out of debt (which may be your personal goal). Make more than your minimum payments on at least one of your debts each month. When making extra payments pay the one with the highest interest rate first. Paying even a little more will help you bring down the balance. If your debt is on credit cards change how you use them. In addition to your budgeted monthly payment, pay off new purchases as soon as they show up on your statement. Talk to your financial advocate about a consolidation loan which combines all of your balances into one loan and payment. Typically it has a lower interest rate, fixed term and the payment is less. Here is the kicker - once you pay off your credit cards, to stay ahead you cannot carry balances again. Use your improved cash flow to pay cash for things or to contribute to your emergency fund if it needs topping up.

Step 6: Know your credit score and do what you need to do to protect or improve it. To get more information, take a look at our article Improving Your Credit Score on our website. To access the article go to mycreditunion.ca and click on Belong and then Educational Articles.

Step 7: Take the Financial Strength test and understand what your savings goals need to be for your retirement and other savings needs.

Not sure you can get past Step 1? Talk to YOUR Financial Advocate! We are here to help you figure out what you need to do to meet your financial goals today, tomorrow and into the future. But most of all, be prepared for slip ups – it is OK. Don’t focus on the mistake, let it go and resolve to do better.