Imagine the weight lifted off your shoulders if you didn’t have to worry about how much money you have in your bank account—no more diligently checking price tags, no stringent budgeting involved, and certainly not having to sacrifice indulgences to pay for everyday essentials. That’s essentially the dream for most, given that 73% of Americans say finances are their top stressor. And despite inflation cooling, between 20% and 35% of households live paycheck to paycheck, depending on income. 

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While you can’t instantly demand higher pay or magically wish away all your debt, there are a few strategies you can start incorporating into your approach to money management. Craving a little more financial security in your life? Let’s go over six tips that will bring you back some peace of mind.

Live Within Your Means

Living within your means doesn’t always require you to live on instant ramen and stop enjoying pleasures that bring you joy. It simply means spending less than you earn and not racking up debt from credit cards or loans. Your overall lifestyle should align with your income and emphasize long-term financial health over short-term splurges. 

But this doesn’t mean you have to give up your most cherished hobbies, either. For example, there are many legit free SC coins casinos you can take advantage of if you’re into online gambling, and you can borrow books from your local library instead of buying them. Making these small yet impactful changes will pay off in the long run, allowing you to shield yourself from future financial stress.

Conduct Regular Financial Health Audits

Evaluating your financial health isn’t just a once-a-year task—it should happen at regular intervals, whether monthly or quarterly. It’s a lot like going to the dentist or getting a physical at the doctor’s, where you’d want to review and understand what’s going on with your expenses, savings, credit card, and everything finance-related. 

During an audit, you’ll want to review your subscriptions and recurring charges so you aren’t flushing money down the drain for services you don’t need. Moreover, looking at your debt-to-income ratio and general spending patterns will let you know how well you’re managing your finances. Banks usually have these tools built into their online banking platforms, although you can also use other budgeting and debt and subscription management tools to help.

Build an Emergency Fund

Although ideally, we’d want our money to grow linearly, it involves a lot of ebbing and flowing as life unfolds. That’s why an emergency fund is so important, as it’ll act as a safety net in case of a sudden layoff, a medical emergency, or a car repair. When the unexpected happens, you’ll know you have the money to cover those unforeseen costs without turning to less favorable options. 

If you haven’t started an emergency fund, start working your way up to having three to six months’ worth of living expenses with small yet consistent contributions. Ideally, you also want to keep this emergency fund in a high-interest savings account so you can steadily grow your money but still have it readily accessible, unlike a 401(k).

Conquer Debt Strategically

Whether you’ve racked up debt from student loans, a mortgage, medical bills, or even from a period of reckless spending, debt isn’t something you can usually tackle overnight—those who can should consider themselves the lucky ones. Rather than continuing to make minimum payments every month, you should opt for a proper plan to minimize interest and tackle debt more effectively.

Depending on the type of debt you have, different strategies will be more suitable. As a rule of thumb, however, you should focus on one debt at a time, even though taking them on all at once may be tempting. The debt avalanche method, for instance, is about paying off the debt with the highest interest to cut down on unnecessary costs. In contrast, debt consolidation involves putting high-interest debts into a single loan with a lower interest rate.

Got Something to Save For? Set Clear Goals

The best way to turn casual saving into proactive saving is by motivating yourself through specific savings goals. Maybe you want to save up for a vacation or purchase a new laptop. Any type of goal, no matter how big or small, will give your money and the process of earning that money purpose.

The key is to be specific about those goals, making them Specific, Measurable, Achievable, Relevant, and Time-Bound (SMART). These criteria allow you to discover the how, when, why, what, and where, helping you stay on track. An example could be, “I’m going to save $1,600 for a staycation in 8 months by saving an extra $200 each month by cutting back on dining out.”

Educate Yourself About Money

The more you know about how finances work and how to best manage them, the better decisions you’ll make for your future. Credit scores, savings accounts, investments—none of these day-to-day financial concepts are taught in schools, leaving us to learn them on our own. The most important areas for financial literacy include budgeting to maximize your income, investing to earn compound interest, planning for retirement, improving your credit score, and filing taxes and taking advantage of tax deductions. While there are plenty of reliable financial resources online, speaking with an accountant or financial advisor can give you a deeper understanding of all these concepts and strategies.