Since the government isn’t going to bail you out, do it yourself.

It may seem simple, but the truth is always uncomplicated. You can change things for the better in your financial life by doing some surprisingly straightforward things. Here are four small things that will make a very big difference.
1. The first thing most people can do to get their finances under control; is to spend less. I know how rudimentary that sounds, but it is nonetheless true. Everyone wastes money. We buy lunch for the group, we pick up a few impulse items at the store, and we just can’t resist the color ads in the Sunday paper for stuff we had no idea we needed and just couldn’t live without (despite the fact that we were doing it just fine) until the advertisers were kind enough to point it out to us.
A legitimate review of our spending habits will reveal areas where we can, and should, cut back. It is estimated that the average American family spends between $300 and $800 a month in non-essential and impulse items. Consider how far that money could go toward meeting your goals.
2. With the money you can (and hopefully now will) save; pay off your high interest debt, like credit cards, store cars and gas cards. The best investment that most people will ever make will be in paying off their credit cards. If you could receive a 15%, 18%, 22% yield or more today, would you want to invest? Of course you would. Well, paying off your credit cards will save you that amount, resulting in that much more money staying in your bank account. And that’s not all, when one high-interest debt is removed, you can use the money you were allocating to that obligation to pay off others even more rapidly, thereby saving even more. It takes discipline, but you can do it if you make the effort.
3. Now that money that used to go to high interest is available to spend elsewhere, you should build up an emergency reserve. This reserve should be for an amount equaling between three and six months of your household expenses. You may want to place this money in a money market account or other instrument when you can get to it if necessary, but in the mean time will earn you some interest. Remember, a foolish man will always pay interest while a wise man will consistently earn it.
4. The final step in your plan to increase your financial security is to save for tomorrow. This may be for upcoming expenses like college tuition for a child, wedding expenses or retirement. Whatever you do, be careful not to fall back into the trap of just spending all the money you make. Any amount, no matter how small, applied correctly to debt reduction and then savings and investment will serve you well. The security and peace of mind this will bring will be a refreshing change from the fear and anxiety that poor spending habits always generate.

There is a saying in Mexico; “poco a poco se va lejos.” It means “little by little one goes far.” Nowhere is that more true than in our financial lives. Make positive decisions, commit yourself to the actions that will make a difference and then act with complete confidence and you will find immediate improvements in your situation and look forward to even better things in the future. This simple process has worked for millions of others and it will for you too.