When you have no savings for a rainy day, life can be stressful. 
It is scary if you have a financial emergency and your first thought is:
 “I have no savings”.

In fact, a growing percentage of Americans have no savings so it is a feeling many have in common.

When you are experiencing this stressful feeling of having no savings, the thought of building a solid financial future is discouraging. 

But I have good news for you:
It is possible to accumulate savings no matter where you start, even if you have not saved anything yet.

1. Take A Good Look At Your Financial Situation

The fact that you want to work on improving your financial future is a big step in the right direction. 
Now that you are ready to take control of your finances, it is time to take a closer look at your financial life.

To better understand your current financial situation, it is important to calculate your net worth.
Write down all your assets on a sheet of paper. 
Next, do the same with your debts. Reveal all your debts. 

Then simply deduct the summary of your debts from the summary of your assets. The balance is your net worth.
If your net worth is negative, don’t panic.
Many people start building a successful financial future from negative net worth.

If you find that your net worth is positive, you are in a better financial situation than you thought, because you own more than you owe.
Whatever your starting point, you can only make a difference if you are realistic about your financial future.

If you start with zero or negative net worth, you cannot expect this to change overnight. In fact, building a better financial future can be a long road. The earlier you start, the faster you will reach your goal.

2. Take A Good Look At Your Lifestyle

After looking at your current financial situation, you have to learn how you got to this point.
Immerse yourself in your spending habits to better understand your situation. 

Are you spending more than you should? Your first step should be to create a plan to ensure that you don’t spend more than you earn. Otherwise, it is easy to get into debt quickly.

If you find that you are spending more than you should, find the things you can cut back on. Adjust your spending and see it as a new challenge to be creative and economical. In this way you will not miss out on the fun of living and saving.

3.Create A Budget

A budget is essential to get your finances in order. It may seem restrictive to draw up a budget, but without one you cannot start saving. It is important to have one.

Fortunately, there are many ways to create a budget. And I can promise you that you will have much more fun spending and saving when you can follow your progress via budget.

You just have to find out which method of budgeting is best for you, and can help you change your life for the better.

You can write down all your income for the month and all the expenses for the months including the due dates of your bills. 
Then allocate the money for bill payments accordingly and you will know at this point how much you have left for all your other expenses such as food, savings and fun.

As you create your budget, you will find new ways to save money.

There are many ways to reduce your expenses, such as comparing and sorting your contracts and insurance policies and cancelling subscriptions that you no longer use. 
You can also cook and eat at home and use vouchers to pay for your meals. 

4. Build An Emergency Fund 

An emergency fund is the first type of savings you should accumulate. After all, it is your first financial line of defense against the emergencies that will inevitably get in your way. 

Whether it is a flat tire that needs repair or a broken phone, you have the money you need to survive.
If you’re just getting started, this should be your first priority. Start to save $1000 at least.  This is the first cushion you need to cover unexpected expenses.

When you have more control over your finances, build up an emergency  reserve for at least 3 to 6 months of the amount of your monthly expenses. You should keep this sum safely in your savings account.

Once you have built up a full reserve, you can breathe a sigh of relief. Whatever life throws at you, you will be financially ready.

5. Pay Your Debts

If you have a high amount of debt this may affect your other financial goals. 
If you want to save in the long term, debt will prevent you from doing so.

Since you are ready to build a better financial future, start paying off your debts. 
You will need to find a debt repayment strategy that is right for you.

There is the snowball method of paying off small debts first. There is the avalanche method, where you pay back the debts with the highest interest rates first.

Take the time to find the strategy that best suits your situation. Then start your journey towards debt relief. Once you have repaid your debts, you will find it easier to save for long-term goals. 

Not only will you eliminate monthly payments, you will also save the money you had to spend on interest payments, which in return can go into your savings account.

6. Save For Long Term Goals

If you start saving from scratch, large savings goals may seem unattainable. 

For example, retirement and therefore the actual savings for retirement are far from being achieved. It is very important to start saving for your long-term goals as early as possible. Time is of the essence.

If you want to save for your retirement or financial freedom, you can take advantage of saving opportunities such as a monthly savings plan. 

The amount may be small at first, but you can always increase it and make additional deposits.
Another long term goal could be a deposit for your first home.

Plan that into your budget when you start increasing your savings goals. This will help you to achieve your goals.

As you increase your savings, it can be difficult to stay on track. As with all habits, you must be positively motivated not to give up. The best thing to do is to create a vision chart that reminds you of your goals.

AND: Stay Within Your Budget

Even if things look better, you should still save money. Keep your budget, even if your financial life becomes easier.
Remember you were fine with spending less money when you had to. Don’t change your lifestyle, just because you paid off a credit card. 

You have to continually adjust your budget, and make sure you always know what you are spending.

You may be able to save more at some times than at others. If you have difficulties staying on track, think about what you are spending on. 

Make sure that your spending matches your values. Once you find a match between your values and your spending, you can have more fun without spending too much.

7. Find a Side Job

If you are having difficulty achieving your financial goals, you may need to increase your income

A second job is an ideal way to increase your income. A second job offers flexibility in terms of the time you invest and the amount you can earn. 

Whether you want to work from home in your spare time or work outside of your home for a day or two during the week. It will definitely help you to achieve your goals quicker.

8. Put Your Savings On Autopilot

Once you have set your budget, you can automatically transfer your savings to a separate account each month. 

This way, you can save the money you want to spend without any negative impact on your current account. It’s best to do this immediately after you receive your paycheck.

If you find it difficult to stick to a budget because the money is easily available, transfer it to a separate account that is a little harder to access. This forces you to think about your expenses, 

9. Do Not Concentrate On A Deadline

Yes, it is important to set savings targets. 
However, it is important not to stress too much about your deadlines. 

As long as you make progress towards your savings targets, it is not the end of the world to miss a target by a few hundred dollars or a few months.

So do not be discouraged and stop saving. Instead, continue saving according to your plan and watch your savings grow over time. 

You will be surprised how quickly they will accumulate if you take the right steps.

Final Thoughts:

You need to understand the basis of your financial success in order to secure it in the long term.

You need to understand your financial situation in order to form a foundation on which you can build your financial success. 

It is important not to blame yourself for financial mistakes of the past. Instead, focus on the future and take care of your finances.

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