While it may take patience and discipline, financial freedom iswithin your reach. Whether you’re trying to pay off large debts or boost yoursavings for a rainy day, large purchase or retirement, this could be the year that you achieve financial freedom!

Save More of What You Earn!

Only 39% of Americans have a “rainy day” fund that couldcover at least three months of expenses. An unexpected bill,an emergency or a job loss could put many Americans in asituation where they can’t make ends meet. Even if money istight, there are still ways to save more of what you earn.

  1. Know where your money is going. This will help youfigure out where you can adjust your current spending.
    1. List your fixed expenses, such as your utilities,groceries and debt payments.
    2. List the expenses you have a few times a year,such as taxes, car maintenance and vacations.
    3. List what you spent in the last month on the“extras,” including shopping, going out to eat,morning coffee, etc.
    4. Total your expenses and compare them to yournet income. If you’re spending more than you earn,make cuts to your “extras” first and then look for waysto adjust spending on your fixed expenses.
  2. Set a budget. More than 82% of Americans have a budget. A budget helps people plan their finances and mitigate theimpact of any surprise bills or expenses.
  3. Look for ways to save. Some bills, like your utilities, varyeach month, which makes it easier to save money by beingmore efficient with your use. For bills with a more fixedcost, such as cell phone, cable or internet, shop aroundfor reduced service rates to help you save more moneyeach month. Use your newfound savings to grow anemergency fund.
  4. Set up automatic savings if you haven’t already doneso. That way, you don’t have to think about transferringmoney over each month
  5. Continue to track your spending. This may be the mostimportant step; after all, what good is a budget if you don’tfollow it? Track your receipts, review your budget and lookover your bank statements online or on paper