Money! It’s a word that evokes an emotional reaction from most people. November is Financial Literacy Month in Canada, so for the next few weeks I’m turning my Monday posts over to money talk. Today we’ll get the conversation started with 5 things you can do today to take control of your money.

This post was originally published in November 2020 and updated in August 2023.

Money is a major source of stress

In study after study, people around the world cite finances as a significant source of stress in their lives. The economic turbulence of the pandemic and, more recently, record inflation and high interest rates, haven’t helped.

There is good news. Instead of being a passenger and letting your money control you, there are steps you can take right now to put yourself in the driver’s seat. In a 2019 survey by Northwest Mutual, 92% of Americans said nothing makes them happier than having their finances in order.

Let’s look at how you can get started on that road to happiness by improving your confidence and overcoming the emotions related to money.

Disclaimer: I’m not a financial advisor. Everyone’s situation is different. If you need help with your money, find a qualified financial advisor.

5 ways to take control of your money

Stop the negative self-talk

Have you ever caught yourself saying things like this about managing your money?

• “I’m just not good with money.”
• “I don’t know anything about money.”
• “I’m such a loser when it comes to money.”
• “I’ve made so many mistakes. I’ll never get it right.”
• “Why bother trying? I’ll always be broke.”
• “Money is so hard. I must be stupid.”
• “No matter what I do, I just can’t get ahead.”
• “I never have money to do what I want to do.”
• “I’m not a math person.”

I’ll let you in on a secret. You don’t need to be a math person or financial whiz to be good with money.

Math was my worst subject in school. Yet, I’ve worked 30 years in financial services. In my current job, I create programs and content to help people like you get better with your money. If I can be a money expert, you can too!

The first step toward taking control of your money is to stop the negative self-talk. If you catch yourself making statements like these, tell yourself to stop. Turn that negative into a positive. Believe you can do it!

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Start learning

The next step to taking control of your money is learning.

Think back to that course you took on money management in school. What? You didn’t take one? Neither did I. Like a lot of other essential life skills, we don’t learn how to look after our money in school. Sure, we learn to identify coins and count money in elementary school. After that, we’re pretty much on our own. That’s why you shouldn’t feel bad if money is a bit of a mystery to you.

But it’s never too late. Decide today to make learning about money a priority. Remember, you don’t need to be an expert. You just need to know enough to increase your confidence.

To start your learning, there are tons of excellent resources out there to help you. And, most of them are free.

Here are some great places to start

• Read books. Here are a couple that I’d recommend.
  • Money Rules by Gail Vaz-Oxlade
  • The Wealthy Barber by David Chilton
• Find some good money blogs. Here are some I follow that provide simple financial tips.
  • Baby Boomer Super Saver
  • The Twenty Percent
  • The Loaded Pig
• Look at other financial websites. I’ve included some of my favourites here. Some of these are Canadian, but basic financial health concepts like budgeting and saving are universal.
  • MoneySense magazine
  • Getsmarteraboutmoney.ca
  • Financial Consumer Agency of Canada
  • Suze Orman
  • Dave Ramsey
• Check out the resources on your bank’s website.
• If you’re a member of your company retirement plan, look at your plan’s website. You’ll find all sorts of useful resources.

It can be overwhelming. Set a goal to learn a little bit at a time. Good places to start are budgeting, credit, and emergency savings. After that, move on to goal setting, investing and longer-term savings.

Take your time. Everything you learn will increase your confidence so there’s no rush to learn it all at once.

Get organized

It doesn’t really matter how much money you have. Keeping it organized will set you up for success.

There are a lot of tools out there to help you get organized but the best one is the one you’ll actually use. You can start with something as simple as a spreadsheet or even a notebook, a paper calendar and a pencil.

Here are some simple things you can do to get started:

• Make a list of all your income, bills, and savings.
• Schedule your bill payments in your calendar.
• Automate as many things as you can. You can automate most bill payments and savings too!
• Review your bank statement and other account statements.
• Set up a simple paper or electronic filing system. You can start with just four folders: To Do, Savings, Bills, Taxes.

If you’re still not convinced, check out this post on the advantages of keeping track of your spending and setting up a budget.

Start talking

As you get more confident, talk to people about money. Even though money is something we all deal with every day, it’s surprising how little we talk about it with our friends and family.  

Talk to friends

Talk to your partner

If you’re in a relationship, talk to your partner about money. Money is such an emotionally charged subject that many couples would rather talk about anything else.

Money can cause all sorts of relationship issues and it’s one of the leading causes of divorce. Many couples aren’t on the same page about money. When they do talk, it’s more likely to be an argument than a helpful conversation. According to a survey by Ramsey Solutions, 41% of couples who have consumer debt say they argue about money—and it’s what they argue about the most.

Make a money date to sit down and get the conversation started with your partner.

Talk to your kids

And, if you have kids, think about the example you want to set for them. Take younger kids shopping and talk them through how you decide what to buy. With older kids, be open and honest about how your family makes money decisions. Give them some money and let them decide what to do with it.

Talk to your elderly parents

If you have elderly parents, talk to them about their finances, including their wills and powers of attorney. Make sure you know where they keep their important papers.

Find an expert to help you

Finally, you don’t have to do this alone. A professional financial advisor can guide you and help you make sense of it all. FP Canada reports Canadians who engage in financial planning have significantly higher levels of financial and emotional wellbeing.

It can be hard to find an advisor you trust. Ask friends and family for recommendations.

Before engaging an advisor, you’ll want to ask them some questions. Find out about their experience, credentials and how they are paid. Check out FP Canada’s Asking your financial planner the right questions for a great list of questions to ask.

Just do it!

Stop procrastinating and start taking control of your money today. You’ll wish you did it sooner.

What tips do you have for managing your money? Tell us below.