Do you dream of becoming rich and debt free? Unless you win a big prize in a lottery, you need to find ways to make your money go further. It may not be able to control the amount of money available, however, to take control of your finances personal gain in financial security. Here are five tips to help you manage your finances and reduce debt.

1. Take charge of your credit cards

How many credit cards do you have? If the answer is more than one, should consider consolidating your debts by choosing the best credit card to suit your circumstances and the closure of the other cards.

A bank officer is happy to arrange to consolidate your debts into one card. You may be able to negotiate a special agreement to reduce the interest rate on your new card for the first six months to twelve months. To avoid the temptation to spend more money, cut the cards you no longer need.

Depending on the amount of money you owe on your credit cards, and how well you can control your spending, it may be worth considering asking your bank manager for a personal loan to pay off your credit card debt.

Once you have a personal loan, you can change your card from a credit card to a debit card. A debit card lets you buy items using their own savings account. Your bank may offer a visa debit card, so you can use your card when you purchase items over the Internet or by telephone. Remember, however, consolidation through personal loans and credit cards that need to met strict eligibility criteria that probably means having a good credit history.

2. Start saving

Before opening another savings account, consider using the extra money you may have to pay your credit card. The interest rate on your credit card will be higher than the interest rate you can get from a savings account.

Once you have reduced, or paid off the debt because of the credit card the next step is to open a fixed deposit account or a high interest savings. Do not lock their savings, as you may need money for an event of force majeure, such as repairing or replacing a car or an appliance.

If you have trouble saving money, set a savings goal and give yourself a reward if you succeed. For example, if you save regularly for six months, is rewarded with a weekend.

3. Pay extra on your mortgage

Although interest rates were low during the global financial crisis, interest rates have been steadily increasing since then. If you can afford to pay even a small amount of extra money into your mortgage, you will benefit financially.

Payment of money on your mortgage is an ideal way to save because it will shorten the life of your mortgage for years and money invested in your mortgage is not taxed at the year end. Talk to your broker or financial advisor about the benefits of paying extra money on your mortgage.

4. Paying extra money in retirement

Once you have organized your credit cards and your mortgage, it's time to consider paying extra money in your retirement. The amount of money your employer puts into your retirement fund is not enough. You will not be able to retire even at half their current salary, if it relies heavily on employer contributions. The government provides incentives for you to pay more in retirement. Low income people will benefit especially as the government matches dollar for dollar the first $ 1,000 you put into your retirement. These rules are changing often so be sure to seek independent professional advice.

Go to the website Australian Securities and Investments Commission's financial advice about retirement, or consult your financial advisor.

5. Teach your children to the Budget

You can start teaching your child to budget when young. A five year old can handle a small amount of pocket money. If you start training your child from a young age, they will be better for the budget as an adult. A child who has learned to budget not to constant demands on you for extra money when I grow up.

Teach your child to budget not only ease your own financial burden, but will give your child the tools they need to become economic security when I grow up.

Take charge of your credit cards, start a savings plan, pay extra on your mortgage or your retirement, and teach your child how to budget. Follow these tips and your financial security will be well on the way to be assured.

This article is for educational purposes only and is not financial advice. Consult your financial adviser or other professional before making a decision on any financial transaction.