From Broke to Boss: How to Take Control of Your Finances

By Mrs. Shay Cook, CEO & Founder of Crusaders for Change, LLC (C4C) Accredited Financial Counselor® & Financial Fitness Coach®

Feeling like you’re constantly living paycheck to paycheck? Drowning in debt? Wondering where all your money goes? You’re not alone. Many Americans are struggling financially, and the stress of not having control over their money can feel overwhelming. Recent data from 2024 indicates that about 25% of U.S. households are living paycheck to paycheck, an increase from previous years. Around 35% of households earning less than $50,000 annually are in this category, up from 32% in 2019. But the good news is that financial freedom is possible. With the right strategies, mindset, and guidance, you can go from "broke" to "boss" and create a stable, secure future for yourself and your family.

• The gender pay gap: Women in the US earn on average 83 cents for every dollar earned by men, according to the U.S. Bureau of Labor Statistics.

• Caregiver responsibilities: Women are more likely to shoulder the majority of caregiving responsibilities for children and aging parents, which can significantly impact their earning potential and career advancement.

• The "motherhood penalty": Women may experience career disruptions due to pregnancy and child-rearing, which can negatively impact their earning potential and long-term financial security. Studies have shown that women who take time off to care for children often experience lower wages and slower career progression.

• Retirement savings gaps: Due to factors such as lower lifetime earnings and career interruptions, women are more likely to have lower retirement savings than men, increasing their risk of financial insecurity in retirement.

• Underrepresentation in leadership roles: Women are underrepresented in leadership positions across many industries, which can limit their earning potential and access to resources.

The Reality of Financial Struggles in America

Before diving into solutions, it’s important to understand the financial landscape many Americans face today. Many Americans have little to no savings and rely on each new paycheck just to get by. This is an increase from previous years and affects not just low-income earners but also many middle-class households. A new survey revealed 27% of U.S. adults have no emergency savings at all, the highest percentage since 2020.

All generations carry debt, but Generation X led all other generations in having the highest average auto loan and credit card debt. As of 2024, total U.S. consumer debt has reached $17.57 trillion, which includes mortgages, auto loans, student loans, and credit card balances. Credit card debt alone has hit record highs, with the average American carrying a balance of over $6,000. Rising costs of living, wages with no raises, and surprise expenses make it difficult for many families to break free from financial stress. However, taking proactive steps can help you regain control and build a healthier financial future like a boss. 

Step 1: Seek Professional Guidance

If you’re feeling overwhelmed by your financial situation, you don’t have to go through it alone. Financial counseling can provide personalized strategies and accountability to help you reach your goals faster. Crusaders for Change offers expert financial counseling, including:

• Individual Financial Counseling

• Couples Financial Counseling – Strengthen your relationship by aligning financial goals and improving communication about money.

• Debt Coaching & Counseling – Get guidance on debt repayment strategies and learn how to break free from financial stress.

• Faith-based Financial Counseling – Find financial peace through faith-based financial principles that align with your values.

  
  

Step 2: Assess Your Financial Situation

The first step toward financial stability is understanding where you currently stand. Many people avoid looking at their bank accounts or debt statements out of fear, but knowledge is power. Start by tracking all your income and expenses. Write down every dollar you earn and spend for at least a month. This will give you a clear picture of your financial habits and where your money is going.

Next, take stock of your debts. List out all your credit cards, loans, and other obligations, along with their interest rates and minimum payments. This will help you create a plan for tackling your debt strategically.

Step 3: Create a Budget That Works

A budget isn’t about restricting your spending—it’s about giving yourself control over your money. Start by ensuring that your essential expenses (housing, utilities, food, transportation) are covered. Then, allocate money for savings and debt payments before spending on discretionary items like entertainment and dining out.

Using a free budgeting app or a simple spreadsheet can help you stay on track. The 50/30/20 rule is a good guideline: spend 50% of your income on needs, 30% on wants, and 20% on savings and debt repayment. If your current expenses don’t fit within these guidelines, look for areas where you can cut back.

Step 4: Build an Emergency Fund

One of the biggest reasons people fall into debt is unexpected expenses, like medical bills or car repairs. Having an emergency fund can prevent you from relying on credit cards in tough situations. Start small—aim to save at least $500 to $1,000 as a safety net. Once you achieve that, work toward building a fund that covers three to six months of living expenses.

The best way to grow your emergency fund is through automation. Set up an automatic transfer from your checking account to a separate savings account each payday, even if it’s just $25 or $50. Over time, these small amounts will add up.

Step 5: Tackle Your Debt Strategically

If you’re struggling with debt, having a clear repayment strategy is crucial. There are two popular methods for paying off debt: the debt snowball method and the debt avalanche method.

• The debt snowball method involves paying off the smallest debts first while making minimum payments on the larger ones. This helps build momentum and motivation.

• The debt avalanche method prioritizes debts with the highest interest rates first, saving you more money in the long run.

  
  

Choose the method that works best for you and stick to it. If you have multiple high-interest debts, consider consolidating them into a lower-interest loan or negotiating with creditors for better repayment terms.

Step 6: Increase Your Income

Cutting expenses is important, but increasing your income can accelerate your financial progress. Consider picking up a side hustle, freelancing, or asking for a raise at your current job. If possible, invest in learning new skills that can lead to higher-paying job opportunities. Passive income streams, such as renting out a spare room, can also provide long-term financial benefits.

Step 7: Practice Mindful Spending

Impulse spending and lifestyle inflation are common pitfalls that prevent financial growth. Before making a purchase, ask yourself if it’s a need or a want. Implement a 24-hour rule—if you see something you want to buy, wait a full day before purchasing it. This helps reduce unnecessary spending.

Another strategy is to focus on value rather than price. Buying cheap, low-quality items often leads to spending more in the long run when replacements are needed. Instead, invest in durable products that will last.

Why Working with a Financial Counselor Can Save You Time and Money

Engaging with a financial counselor can significantly enhance your ability to manage debt and achieve financial health. Here's why:

Accelerated Debt Reduction

Financial counseling has been linked to substantial decreases in debt balances. Participants in the National Foundation for Credit Counseling’s program reduced their total debt by an average of nearly $9,000, whereas a comparison group who did not receive financial counseling saw an increase in debt over the same period. 

Improved Credit Scores

Counseled individuals often experience enhancements in their credit profiles. In the same NFCC program, participants' average credit scores improved by 14 points, with those in the lower credit score quartile seeing increases of up to 50 points. 

Enhanced Financial Behaviors

Financial counseling fosters better money management practices. Approximately 68% of financial counseling clients reported improved ability to manage their finances, and 73% indicated more consistent debt payments after counseling. 

Psychological Benefits

Addressing debt through counseling not only improves financial metrics but also mental well-being. Individuals who received debt relief experienced significant reductions in anxiety and enhancements in cognitive functioning. 

In summary, financial counseling provides structured guidance, accountability, and support, leading to more effective debt management and overall financial well-being compared to tackling these challenges alone.

Your Journey to Financial Freedom Starts Today

Going from “broke” to “boss” isn’t an overnight process, but with commitment and the right strategies, financial freedom is within reach. Start by assessing your finances, creating a realistic budget, and prioritizing debt repayment. Build an emergency fund, explore ways to increase your income, and practice mindful spending. Most importantly, don’t hesitate to seek help from experts who can provide support and guidance along the way.

If you’re ready to take control of your finances, Crusaders for Change is here to help. Contact us today to start your journey toward financial stability and peace of mind. The road to financial freedom begins with a single step—take yours now!

Up next: Listen to our recent podcast, Budgeting Goals with a Purpose!