Many people plan to pay off all their debt, reduce their expenses, save more and manage their money better. However, it requires determination and self-control to achieve this. 

Having very clear financial goals, knowing your monthly income and expenditure, cutting spending, paying off high-interest debt and diversifying income sources are some of the best ways to help you stay on top of your finances. 

1. Set clear financial goals

It is important to have specific, short, medium and long term goals. Define what you want to accomplish and how long it will take you to do so. This helps you to decide how much to put aside. For example, you may need to save a certain amount every month for a year to put down as a deposit on a car. 

If you are trying to save, it will help to automate your savings so a specified amount of money goes out of a check account and into a savings account on a periodic basis. 

2. Set up a budget

Examine income and expenses to find out how much is left at the end of a month, if anything. A number of free apps will help you to do so. It is impossible to accomplish any financial goals if you live from paycheck to paycheck and have no money left at the end of a month. 

If you are set on accomplishing your financial goals, you need to trim your expenses and look at ways of earning extra income. This is the only way to make sure you have money to spare at the end of the month. 

3. Cut your expenses

There are many ways to cut monthly expenses. For example, you may be able to negotiate lower rates on internet, cable and phone bills. 

Shopping around for a cheaper car, home, and insurance can save money. When it comes to finding the best deals on car insurance, Canadians do not have to do it alone. BrokerLink knows how overwhelming the process can be and has trained professionals that help you get the best price and walk away with the option that’s best for you. 

Canadians can use the Paytm app to earn rewards when they pay their monthly bills. Eating out less and making meals at home is another saving option. It is also possible to save on water and electricity bills with efficient use. 

It is possible to automate bill payments, to avoid late payment fees and damaging your credit record. You may even get discounts with automatic payment. 

4. Diversify your income sources

Once you have cut down your expenses, you can start trying to increase your income. You may decide to try and negotiate a pay raise or look for a better-paying job. It is also possible to seek out other sources of income to supplement your salary. Proofreading, transcribing, starting a blog or pet-sitting could all be useful extra sources of income. 

Many people establish a great income source by listing a spare bedroom on Airbnb. Teaching English online, putting your car to work to drive others around, or selling your skills on freelancing platforms are some other ways to supplement your income. This will help you to pay off debt, save and achieve financial independence. 

5. Pay off high-interest debt

Credit card debt is high-interest debt. Pay off credit card obligations as soon as possible because each day that goes by on the outstanding balance increases the debt. 

Only making the minimum payment means the debt goes on and one. In Canada, there are bad credit options you can check out if your financial reputation has suffered due to poor financial decisions you have made in the past.