5 Key Steps to Achieving Sustainable Finances (2024)

There are many reasons why people want to learn how to better manage their finances; from pay-cuts to impulsive spending. What about unexpected emergencies? Because well – life happens! Most who find they live paycheque to paycheque will likely have several compounding factors that can make it seem like they’ll never dig themselves out of the hole they’re in.

If this sounds like you then you’re certainly not alone. We live in an age where debt rules a lot, if not most, people’s lives. Many of us were taught from a young age to always reach for more – there’s a sense of entitlement that’s ingrained into our modern day society, speaking from what I’ve seen at home and in my many travels throughout North America.

The great news is that nothing says we have to subscribe tothe constant pursuit of accumulating more things in order to feel successful oreven satisfied. Instead, I’ve found it very useful to actually de-clutter andsimplify my surroundings – and my finances. To remind myself why I’m gratefulfor the things I have and to let go of the things that don’t bring me joy. YesI took that one from Marie Kondo’s Netflix series – which I highly recommend!

5 Key Steps to Gaining Control Over Your Finances Include:

1. Budgeting and Planning is a MUST. It’s best to just dive right in and get into the habit of planning your shopping, plus tracking where your money goes. That’s the first step to making sure your spending (and earning opportunities) are in balance and sustainable.
2. Debt-repayment should be your main focus if you’re carrying debt. I’m in the process of paying back just over $25,000 worth of debt with most of it being high interest credit card debt. Stay tuned for when I share my successes (and set-backs) of my debt-repayment story.
3. Savings are as equally important (if not more) as the first two steps. Focusing on both short-term but also the long-term goals. The trick to this step is starting early. If you’re like me though then you may be late to the game, based on the information that’s out there. I’ve always been of the mindset that it’s better late than never, especially when it comes to saving!
4. Investments cannot be overlooked. This step is one of the more intimidating ones. I myself don’t even have a handle on this one yet. I hope to use this blog as a record of my new ventures and hopefully shed some insight for those who are feeling overwhelmed like I do even as I write this post.
5. Living a Frugal Lifestyle is one of the best ways to get your spending under control. I’ve saved the best step for last. The key to finding the motivation to be consistently frugal in your day-to-day spending is in knowing what’s important to you. You also need to know what’s NOT important as that’s where you’re going to figure out what to cut back in both your time and energy.

This is how you start to achieve sustainable finances. That’s ultimately the goal. Let’s face it – we need to find a way, as a society, to become more sustainable both for the climate and the economy. I’m a firm believer in that this shift starts with each individual household.

There’s a sense of stewardship and a confidence in yourability to not only survive but thrive in the face of the unexpected challenges,which so many face unprepared. I know I was living paycheque to paycheque in mytwenties but I still managed to fund a very healthy social life along withtraveling at least once or twice a year. At times, I still struggle withbalancing my debt payments with my day-to-day spending but for the most part,it’s been great to be able to figure out some ways to make extra money to getahead and towards becoming debt-free!!