Taking control of your finances has a profound impact on your overall wellbeing, resulting in reduced stress, improved relationships, and better self-esteem.

Writing up a budget, tracking your spending, and creating a debt repayment plan will not miraculously solve your financial issues overnight. But doing these things will give you a sense of control ‒ a sense that you are in charge of your money and your financial destiny.

It removes that sense of helplessness that comes when we feel overwhelmed. Having a plan ‒ whether that is for debt repayment or a saving goal ‒ gives one a sense of purpose and the discipline to stick to one’s goals.

This is something I am reminded of each year when working with our Money Makeover candidates.

Reduced stress

A reduction in their stress levels is the most common observation made by our candidates.

As Mlibokazi says, “I no longer worry about money because there is a plan that I am sticking to at all costs. I may still feel the financial strain, but now I see how it will be resolved and I am actively working towards it.”

By taking control of your finances, you can reduce the stress that comes with worrying about money. The reduction in stress is not because you suddenly have less debt, but because you know where the money is going and have a plan for your money.

Better decision-making

Taking control of your finances results in better decision-making which in turn improves your long-term finances.

As our 2023 Money Makeover runner-up Zihle says, “an eye opener for me was realising the need to budget prior to receiving my salary and noting down every single expense ahead of time.

“This helped me to become prepared because month end tends to be busy and everything feels rushed around that time. Having a proper budget in place has saved me from things such as impulsive spending, chasing ‘specials’ and not knowing where my money went.”

When you have a clear understanding of your financial situation, you can make better decisions about your money. This can help you avoid impulsive purchases and make more informed decisions.

This is why none of our candidates had to rely on their credit cards over the last six months to make ends meet.

Improved relationships

Improving your relationship with money also improves your relationships with those around you.

This is especially true in a marriage when a couple starts to talk about money and work together to reach their goals.

Our winner Johan and his wife are planning their retirement goals together, and Mlibokazi and her husband are talking about money for the first time.

“I truly believe that these steps that we have taken towards reaching this goal have changed my relationship with money. We had never even done a family budget before,” says Mlibokazi.

Improved self-esteem

Financial control can also improve self-esteem. In previous years we have seen candidates overcoming depression because they were now in control of their financial destiny.

From having been so depressed about her future that she no longer thought life was worth living, Zihle realised that she has a future as an individual and not only as a provider and caregiver to her sisters.

This has given her the confidence not only to get out from under crushing debt, but to apply to study for her Masters.

What the Money Makeover Challenge has proven every year is that while taking control of your finances and finding the discipline to stick to your plans is challenging, the rewards are far beyond just the numbers.

These steps towards financial freedom are available to everyone. It’s not rocket science. The only difference is that the Money Makeover candidates had an accountability partner in both their adviser and City Press.

Find your accountability partner – that could be a spouse or other family member, a friend, or you could even follow these steps as a group of friends.

Set out your goals and ask them to hold you accountable.

• Go through your bank statements to understand your expenses
• Track your actual spending to see where your money is going
• Identify areas you can cut back to create savings
• Commit to not using your credit card by avoiding impulse spending
• Draw up a list of your debts and what is still owing
• Start by paying off just one debt at a time
• Start an emergency fund – using bonuses or tax refunds

This article first appeared in City Press.