The Ultimate Guide to a Financial Glow Up: 10 Steps to Take Control of Your Money

Last Updated October 19, 2024 by Davina Kelly

If you’re feeling like it’s time for a financial glow up, you’re in the right place! 

We all dream of living a fabulous lifestyle, but let’s be real—getting there requires having our finances in check. 

Whether you’re trying to break free from debt, boost your savings, or start investing, a financial glow up will transform how you handle money. 

In this post, I’ll walk you through actionable steps that will help you glow up financially!

These steps will help you improve your relationship with money and take control of your financial future.

Here is what we’ll be focusing on in this financial glow up:

• Auditing your finances
• Tackling debt
• Creating or updating your budget
• Building up your emergency fund
• Investing
• Checking your net worth
• Reviewing your 401(k)
• Making extra money
• Setting financial goals
• Educating yourself about money

This post may contain affiliate links, which means we will receive a commission if you purchase through our links, at no extra cost to you. Please read full disclosure for more information.

10 Step Financial Glow Up:

1. Audit Your Finances

Before we can make any changes, we need to take a close look at our past. So, let’s start by auditing your finances. I know it can feel overwhelming, but trust me, it’s a crucial step toward your financial glow up. 

Start by pulling up your bank and credit card statements for the past three to six months. Yes, it might feel uncomfortable to face your spending habits, but awareness is key. And going through your transaction history will give you a clear picture of where your money has been going. 

Look for any subscriptions you’re paying for but no longer use – whether it’s a forgotten streaming service or an unused gym membership. Cancel those immediately to free up some extra cash. 

As you’re going through this process you might spot impulse purchases you made such as clothes sitting in your closet with the tags still on – return them and get your money back. This step is all about accountability. 

Once you’ve gone through this simple audit you’ll have a clear understanding of your spending habits and be in a better position to make intentional decisions moving forward. 

2. List All Your Debts

The next step in your financial glow-up is addressing any debt you have.

Make a list of every single debt you owe. This includes credit cards, student loans, medical bills, unpaid bills and even money borrowed from friends or family.

For each debt, note the total balance, the minimum monthly amount and the interest rate. 

Debt can feel overwhelming, but once you have it all listed out, you can create a plan to tackle it. There are two popular methods for paying off debt. 

The Debt Snowball Method

Start by paying off the smallest debt first. Make minimum payments on all other debts, but throw every extra dollar you can at the smallest balance. 

Once that’s paid off, move on to the next smallest debt. This method gives you quick wins and a sense of progress. 

The Debt Avalanche Method

If you prefer a numbers-first approach, you might opt for the avalanche method, where you target the debt with the highest interest rate first. This method saves you the most money in interest payments over time. 

You can read here to learn more about each method.

Both methods are effective so choose the one that motivates you the most. Having a debt repayment plan will give you a sense of control and reduce financial anxiety. 

Related: 13 Ways To Pay Off Your Debt Fast 

3. Create or Update Your Budget

A budget is a financial roadmap. It helps you track where your money is going and ensures you’re prioritising your financial goals. 

If you’re new to budgeting, the 50/30/20 rule is a great starting point. With this method, 50% of your income goes toward necessities like rent and groceries, 30% toward wants such as eating out and entertainment, and 20% is reserved for savings and debt repayment. This simple structure helps you stay balanced without feeling deprived.

The goal here is to make sure you’re not overspending in any one area and that you’re consistently saving and investing for your future. 

To learn more about the best budgeting methods and how to implement them, you can check out this post. 

Already have a budget? When was the last time you gave it a check-up? Regularly reviewing your budget is crucial to make sure it still aligns with your current lifestyle and goals. 

Here are some steps to review your budget effectively:

• Update your income: Have you had any changes such as a raise or side hustle? Make sure your income is accurately reflected.
• Reassess your expenses: Check if any direct debits or recurring payments have increased and adjust your budget accordingly. 
• Evaluate its effectiveness: Is your budget still realistic for your needs or does it need to be tweaked to better serve your goals?

By reviewing and updating your budget regularly, you can make sure it’s still working for you and keeping you on track for your financial glow-up.

4. Build Up Your Emergency Fund

Did you know that according to Bankrate, 1 in 4 people in the U.S. have no emergency savings? It’s no wonder so many people are living paycheck to paycheck.

An emergency fund is an absolute must. Life is unpredictable – cars break down, unexpected medical bills arise – and without a safety net, you could find yourself turning to credit cards or loans to cover costs. This used to be me before I improved my finances. 

Aim to save at least $1,000 as a starting point. If you can go further and build up three to six months’ worth of living expenses, that’s even better. This cushion will protect you from financial stress when life happens. 

If you don’t have an emergency fund yet, don’t worry. Start small. Commit to setting aside a fixed amount each month, whether it’s $50, $100 or whatever you can afford. The key is consistency. Even small, regular contributions will add up over time.  

At the same time, open up a high-yield savings account to put your emergency fund in. If your emergency fund is sitting in a regular checking account, you’re missing out on potential gains. Traditional checking accounts offer little to no interest and with inflation that means your money is losing value over time. 

High-yield savings accounts, on the other hand, offer much better interest rates – typically around 4 – 5%. It’s an easy way to earn passive income on your savings.

To make saving effortless, set up an automatic transfer from your checking account to your high-yield savings account. This way, you won’t even have to think about it. 

Over time, you’ll have a solid financial cushion that gives you peace of mind and helps you avoid debt when life throws a curveball.  

Plus, the interest will start to compound and you’ll be pleasantly surprised by how much your savings can grow. 

Grab my FREE emergency fund tracker below to help you track your progress.

5. Invest in Index Funds

Now that you have your emergency fund in place, it’s time to invest. A lot of people get overwhelmed by the stock market but it doesn’t have to be complicated. 

One of the easiest ways to invest is through index funds, which track the performance of a specific market index, like the S&P 500. 

Index funds can be a great choice for beginners because they offer diversification and lower risk compared to picking individual stocks. They’re also relatively low-cost, which means more of your money is working for you. 

I started my investing journey with index funds, and it’s one of the best financial decisions I’ve made. It allowed me to build a solid five-figure portfolio without the stress of constantly managing individual stocks.

If you are someone who prefers hands-on guidance, you can always consult a financial advisor. But honestly, investing in index funds is a smart and simple strategy that beginners can use to get started. 

You don’t need a lot of money to start – you can begin with small contributions and gradually increase them as you get more comfortable with the process. 

Use a tax advantage account like a Roth IRA (ISA if you’re in the UK) to invest. These accounts allow you to build wealth without having to pay taxes on your profits. 

Ready to learn more about investing? Check out my posts below for tips, insights and the exact steps to help you get started. 

The Ultimate Investing Guide for Beginners

How To Invest in Index Funds

6. Check Your Net Worth

Tracking your net worth is one of the best ways to measure your financial progress. Your net worth is simply the total value of your assets (savings, investments and property) minus your liabilities (debt). 

To get started, list out everything you own and everything you owe. The goal is to see that number grow over time. 

Checking your net worth regularly will give you a clear picture of your financial health, help you identify areas that need improvement and show you how close you are to achieving financial freedom. 

If your net worth is negative right now don’t be discouraged – mine was too when I first started! But I managed to turn that number positive and eventually reached financial independence so it’s totally possible for you too. 

The point is to track your progress and make intentional moves to improve it. 

7. Review Your 401(k)

Many of us tend to forget about our 401(k) accounts (or pension if you’re in the UK), especially if we’re not actively managing them. If you have a 401(k) through your employer, now’s the time to give it a thorough review. 

First, make sure that you are contributing enough to your 401(k) to get the full employer match – this is essentially free money that you don’t want to leave on the table. 

Some employers match contributions dollar for dollar while others offer a percentage match, so check your plan details and max it out. Even small increases now can make a big difference to your retirement savings over time.

Now, let’s talk about those old 401(k)’s from previous jobs. If you’ve switched employers, you might have old accounts just sitting there. 

Don’t leave those accounts behind. Contact the HR departments at your previous jobs to confirm whether you still have money in old 401(k)’s, and if so, roll those funds over to a new account that you can actively manage. 

You can roll over old 401(k)’s into an IRA (Individual Retirement Account) in the U.S. or a SIPP (Self Invested Personal Pension) in the UK. This consolidates your retirement savings and gives you more control over how these funds are invested. 

I’m currently working through this step myself—it’s not fun, but I know it’ll be worth it in the long run.

Plus, keeping your retirement money in one place will help you stay organised and keep an eye on your progress toward retirement. 

8. Find Ways To Make Extra Income

If you really want to speed up your financial glow up, finding ways to make extra money can be a game changer.

There are plenty of ways to increase your income. You can start a side hustle, take on freelance jobs or sell unused items online. This extra cash can go toward paying off debt, building up your savings or investing in your future. 

Start by evaluating your skills. Can you offer services like freelance writing, graphic design or tutoring? Or maybe you have items sitting in your closet that you can sell on platforms like Poshmark or eBay? 

If you’re looking for a super easy way to make extra cash in your spare time, consider taking online surveys. You can get paid just for sharing your opinion — all from the comfort of your couch using your phone.

If that sounds like your kind of gig, give these options a try!

• Survey Junkie – Complete surveys in as little as 10 minutes and cash out once you reach $10.
• InboxDollars – Earn money not only by answering surveys but also by playing games and watching videos. Plus, you’ll get a FREE $5 bonus just for signing up.
• My Points – A versatile platform that rewards you for surveys, shopping online, reading emails, and more. You’ll also get a FREE $5 welcome bonus, with an additional $1 just for creating your profile.

Even small amounts of extra money can make a big difference when you are intentional about it. 

9. Set New Financial Goals

With your financial glow up underway, it’s time to set new goals. This could be anything from saving for a down payment on a house, building your retirement fund or creating multiple streams of income. Whatever your goals are, write them down and be specific.

For example, instead of saying, “I want to save money,” say “I want to save $10,000 for a home downpayment in two years.” 

Setting clear goals helps you stay focused and motivated as you work toward them. And remember, no goal is too big or too small. It’s all about making steady progress.

10. Educate Yourself about Money

The last step in your financial glow up is ongoing: educate yourself about money. Knowledge truly is power. The more you know, the better you can manage your finances. 

Take the time to read personal finance books, listen to podcasts or watch YouTube videos to continuously expand your knowledge.

When I first started my financial journey, I read every personal finance book I could get my hands on and followed YouTubers who shared their financial journeys. It helped me shift my money mindset, learn how to live below my means and invest wisely. 

Prioritizing financial education will help you keep growing and glowing up financially.

The more you learn, the more empowered you’ll be to make the right moves for your financial future!

Bonus Tips for a Lasting Financial Glow-Up

To make your financial glow up last, here are a few more tips:

• Track your progress: Whether you use an app, a spreadsheet, or old-fashioned pen and paper, keeping track of your spending, savings, and investments will help you stay on top of your finances.
• Automate your finances: From savings to bill payments and investing, automating these processes takes the guesswork out of managing your money and ensures consistency.
• Prioritise self-care: Financial wellness is just one part of the puzzle. Make sure you’re taking care of your physical and emotional health too. A solid self-care routine can help you maintain the energy and motivation to keep working toward your financial goals.

Final Thoughts about Financial Glow Up

This is your ultimate guide to achieving a financial glow up. Remember, glowing up financially doesn’t happen overnight, but with consistency and determination, you’ll start seeing big changes in your financial life.

What step are you working on right now and how are you planning to glow up your finances? Let me know in the comments. 

This post was all about a financial glow up.

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