These 10 Steps Will Improve Your Finances

How To Save Your Money

I. Spend Less than you Earn — Sounds simple, doesn’t it? Yet too many of us rack up excessive levels of debt because we overspend. On occasional weeks or months you may need to spend beyond your paycheck, but doing it on a regular basis is unsustainable.

II. Save until you set up an Emergency Fund of 6 Months of Expenses — A job loss could happen at any time. A 6-month emergency fund is significant, but provides a solid cushion. Start salting away some percentage of your income by direct deposit in an emergency fund. You will be amazed at how fast it grows into thousands — if you avoid raiding it. 

III. Track your Spending — Take the time to set up a monthly budget and adjust your spending if you find yourself violating Commandment I.

IV. Understand your Credit Score and Then Raise It —  You can check your credit score and read your credit report for free using MoneyTips Credit Manager. Make sure that it is accurate, and then control your credit purchases and payments to raise your credit score.

V. Compare Prices Before You Buy 

VI. Start Investing and Retirement Planning Early — It is vital to put away at least some of your income toward retirement funds in order to let them grow for as long as possible. 

VII. Plan for Large but Irregular Expenses — As you formulate your budget, include the occasional miscellaneous expense to cover irregular and unpredictable expenses like auto repair. This is separate from regular planned payments such as annual insurance payments and taxes, which should be incorporated in your budget. Nor is this part of your emergency fund. It’s not an emergency if you planned for it.

VIII. Take A Day to Think About Purchases — Delaying your purchases for a day gives you time to think about whether or not you really need the items and curbs regrettable impulse buys.

IX. Write a Will and Keep It Updated — Do not leave it up to the state to decide what happens to your estate when you pass away. 

X. Learn from your Mistakes — We can’t control things that have already happened, but we can control what we do in the future.

This article was provided by our partners at

To Read More From MoneyTips:

The ABCs of Americans’ Financial Literacy (Infographic)

We Can’t Afford To Live The American Dream

Economic Fragility of American Households (Infographic)

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