The most important thing you can do to make your personal economy strong is to have an umbrella—a rainy-day fund with at least enough money to pay all of your bills for at least three months without a paycheck. Call it $10,000.
Save 10 Percent of Your Paycheck
It may sound like a lot, but start with 5 percent or even 1 percent, and build up. Deposit the money automatically into your savings account; you'll never miss what you don’t see in the first place.Get Rid of Nonessentials
Give up the little things, such as cable TV, eating out, your gym membership, and entertainment.Cut Variable Expenses
You can’t cut off your utilities, stop eating, or give up driving. But you can reduce the cost of the food, energy, and fuel you buy. Opt for the cheapest food store and the cheapest gas. Stay away from restaurants. Turn out the lights; run only full appliances.Clean Out
Take a look through your cupboards and closets. Identify everything you haven’t used in the past six months. Turn what you don’t need into cash on a website like eBay or Craigslist, or hold a yard sale.Adjust Withholdings
Go to the “Tax Withholding for Individuals” page on the IRS website to make sure you aren’t having too much or too little income tax withheld from your pay.
Get creative by making money doing things you already love to do, like dog-walking or selling handmade items. Jus_Ol/Shutterstock
