Taking control of your finances

Financial independence can mean different things to different people. For some it may mean not relying on anyone else for money. For others it may mean being able to save, or not being in debt.

Whatever your definition, to achieve any measure of financial independence you will need to make conscious decisions about what you do with your money. You will need to take control.

It’s tempting, especially when money’s tight, to feel a loss of control over your finances. So how do you get back in the driver’s seat?

Step one is to set yourself some financial goals – what you want to achieve in the short-term and longer-term.  Goal setting is an attitude to life. It puts you in charge. Your goals could include things like paying off your credit card, saving for a house deposit, or starting a retirement plan. 

Step two is to make a budget with the aim of spending less than you earn. Once you have money left over (a surplus) you can then use it to achieve your goals – paying off debt faster or saving for the short or long-term.  It might feel like it's cramping your style, but if you make a budget that suits you, it can be one of your most powerful tools for getting ahead financially.

You can get more information on these steps (along with four others) in the new booklet ‘Sorted - Your guide to getting there’ which you can order free online or by calling 0800 SORT MONEY (767 866). You can also pick up a free copy from your local branch of ANZ or The National Bank.

The Sorted website has tools to help you achieve these steps, including a Goals worksheet and Budget calculator.

If you’ve never thought about your attitude to money before, you should also try Sorted’s Money Personality Profiler - a light-hearted quiz that helps you work out your financial strengths and possible blind-spots.

Or if you want to get an idea of how sorted you are right now, try the Sort Me tool. Answer a series of questions and you’ll get a page of results telling you what you need to work on and what you can do to improve.

Published 15 September 2008