Have a "rainy day" fund. Most financial
advisors will tell you to have an emergency (rainy day) fund of between three to six months of salary.
2.
Have a true-to-life budget. Keep a
record of every amount you spend
over a period of several weeks. Doing
this will let you know where your
money actually goes. This will help
you decide what expenses can be cut
and how much can be saved by cutting
them.
3.
Set long-term goals. Do you know
where you want to be financially, a
year from now, five years from now, or
twenty years from now? Write priorities
down, periodically review them, and
decide what you have to do to meet
them.
4.
Shop for the best interest rates.
Interest adds up quickly whether you
are investing in share certificates or
taking out a new car loan.
5.
Pay yourself first. Don't pay everyone
else first. If possible, save at least
ten percent of everything you earn.
When doing a budget, figure the "pay
yourself first" into your
budget.
