How to feel more in control of your finances

When your finances feel difficult to manage, it can be easy to feel overwhelmed or unsure where to start. But feeling more in control of your finances doesn't necessarily mean changing everything at once.

Taking small, manageable steps can help you understand your current situation, think about what you'd like to change and begin to feel more confident about your next steps. Here are five ideas to help you reflect on your relationship with money and regain a sense of control.

Christmas is a wonderful time of year, a time of giving and extravagance, but the aftermath of generosity and frivolity is far too often reflected negatively in many bank accounts across the globe!

If you are looking to get 'out of the red', here are five simple, practical steps and suggestions that will help you feel better about your finances.

1. Focus on what you can change

Take a sigh of relief in knowing the reality, that however bad your financial situation may appear, even if you see no way forward now, remember that this is not a permanent situation. Just because your overdraft may be maxed out to its limit or you don't know how you will pay off your credit cards, there are many, many ways to improve your financial situation if you are willing to put in a little commitment to change your attitude to money and make small steps towards improvement.

2. Understand where you are now with your banking

Seeing your bank account in negative or 'in the red' each month can be disheartening for anyone, and can facilitate feelings of powerlessness, anxiety and insecurity. Psychologically the most empowering thing you can do in this situation is to  physically view your own money in a bank account that is in the positive, which you monitor regularly. Many banks are offering great deals to switch to them; i.e. move your main stream of income to the new bank and within a certain time frame, if you have closed your old bank account, your new bank will even pay you a thank you sum. Also some banks will reward you for being in credit each month. You can then work proactively to pay off the old overdraft debt with manageable monthly standing order payments. The important thing here is that psychologically your attention will be focused on your new account in the black and the red will begin to take care of itself. 

3. Notice how you talk to yourself about money

For example, explore thoughts such as “I'm terrible with money” or “I'll never get on top of this”. Are they helping? What might a more constructive and realistic way of viewing the situation look like?

4. Explore what money means to you

Money can mean much more to us than simply what we earn or spend. We may associate it with security, freedom, success or independence, and these beliefs can influence how we think about our finances and the choices we make.

Consider what money represents to you. Do certain beliefs leave you feeling guilty about wanting more financial security, or affect how confident you feel making decisions about money?

Becoming more aware of your relationship with money can help you understand what's influencing your choices. Rather than judging yourself for how you think or feel about your finances, consider what feeling more financially secure and in control would look like for you.

5. Take one manageable step

When you're thinking about your finances as a whole, it can be easy to feel overwhelmed by how much you want or need to change. Instead of trying to solve everything at once, focus on one manageable step you can take.

Think about what feeling more in control of your finances would look like for you. Perhaps you want greater financial security, more freedom to make career choices or simply to feel less worried when you think about money.

Whatever your goal, you don't need to achieve it overnight. Breaking it down into smaller, realistic steps can make change feel more achievable and help you recognise the progress you're making along the way.

Feeling more in control of your finances isn't necessarily about having more money. It can also be about understanding your relationship with money, recognising what you can influence and feeling more confident about the decisions you make. If your beliefs about money are holding you back from making changes or working towards your goals, a coach can help you explore these patterns and identify manageable next steps.