Get on the road to financial security—one step at a time

Creating a happy relationship with your money isn’t a matter of having a big bank account. The small habits you pick up over time could carry you towards a stress-free and financially healthy life. 

It might surprise you to know you don’t need to be rich to do this. Anyone can forge their own path to financial security—all you need to do is start. We’ll help you take the first steps here.  

Financial security defined

Different people define financial security in different ways. But most probably agree it means you have enough money to live comfortably today while still being able to afford future unknowns, like emergencies or retirement. 

If you’ve done some long-term financial planning, you can sleep easier at night knowing you’ll be able to handle most money challenges that head your way. That peace of mind can have a positive impact on your physical and mental health, and even your relationships. 

Everyone’s different, but here’s what financial security might look like. You regularly:

• Use tools to keep tabs on your money with some type of budget

• Can afford to pay your bills and regular monthly expenses

• Take on debt only if you can easily pay it back

• Have a regular savings habit for different goals, like retirement or holiday gifts

Financial security might look different depending on your situation. If you’re retired, you might be drawing benefits and retirement savings instead of a salary. If you’re still working, you might have more flexibility to change your income.

How to lay the foundation for healthy finances

All good journeys start with your location on a map. When you know where you are, you can figure out how to get where you’re going. And when it comes to your money, personal budgeting for financial security is your No. 1 tool. 

A budget is your personal map for building financial security. On paper, it’s a list of your income sources, along with details on how much you can afford in different monthly categories: debt payments, rent, groceries, and savings. The idea is to plan your spending to fit within your income each month—and ideally less, so that you have extra to save toward specific goals. 

Once you have a budget plan, it’s a good idea to track your spending progress each month so that you don’t overspend in any category. Many free budgeting apps could help you do this. 

Start small: Everyday tips for building financial security

If a budget is your map to financial security, the strategies you use are the different roads you can take to get there. Some are more direct and others are more winding, but offer good views along the way. Here are some financial security tips you can use every day:

• Experiment with ways to cut costs, like meal planning, playing board games at home, or using the library. 

• Set up automatic transfers for your paychecks from your checking to your savings account. 

• Find ways to reduce high-interest debt, such as taking out a debt consolidation loan or working with a debt resolution company.

• Look for ways to increase your income, like asking for a raise, starting a side hustle, or even switching careers. 

Avoid common money pitfalls

Managing your money is a skill, and done right, it could help you more easily navigate financial obstacles. Sometimes, knowing what not to do can be an even bigger help when creating a financial safety net. Here are some common obstacles to avoid along the way:

• No budget. If you don’t keep tabs on your spending, you have no way of knowing whether your habits align with your goals. 

• Spending extra cash. Tax refunds, bonuses, and other windfalls could get you to the finish line faster—if you use them to pay down debt or build up an emergency fund.

• No autopay. It’s tough to remember when each bill is due, let alone make the payment. You can avoid the hassle by putting all bills on autopay.

• Too much debt. You can make quicker progress toward your goals if you only take out debt when you really need it.

• Minimum credit card payments. It can take years to pay off high-interest credit card debt if you don’t pay extra or consolidate the debt. 

Long-term strategies for financial security

Becoming financially secure can be a lengthy process, so it’s a smart idea to prepare yourself for the long term. That’s especially true given that your needs and challenges will change over time, so it’s best to remain flexible as you adapt. 

You can stay true to your goal, no matter how long it takes or where you ultimately end up, if you consider ways to keep moving forward. Here are some ideas that people often find helpful:

• Set SMART savings goals—Specific, Measurable, Achievable, Relevant, and Timely.

• Create small rewards and milestones to celebrate and help you appreciate the progress you’re making.

• Give yourself grace if you lapse with important habits like budgeting, and pat yourself on the back for picking up those habits again. 

• Consider working with a financial advisor who can help you find ways to reach your goals faster.

• Remember that any progress you make today will help you in the long run, even if it takes a long time to reach your ultimate goals.

• Focus on one new habit at a time, whether it’s learning to budget, increasing your income, or studying retirement planning basics.

What’s next?

• Start a regular habit of saving in an emergency fund.

• Create a starter budget with the idea that you’ll change it and update it over time.

• Take a debt quiz to find out how well you’re handling your debt now, and learn ways to improve. 

• Have a conversation with your partner or other family members about your shared money goals and the changes you’ll be making to reach them.