Minimize Debt

• If you're carrying a heavy debt load, particularly in the form of consumer debt like credit cards or personal loans, you'll have greater difficulty surviving a financial crisis or saving enough money for retirement. If you need to use credit cards, make every effort to pay off the balance in full each month. You probably can't avoid debt entirely, especially when purchasing a home or reliable vehicle, but be sure you can afford the monthly payments on these types of purchases.
  
  

Establish Emergency Fund

• A financial emergency can occur at any time. Your refrigerator can suddenly go out, the car may need a major repair or you could experience an unexpected job loss. Establishing an emergency fund equaling three to six months of your income can keep you afloat and prevent the need to live on credit cards until you get back on your feet. If you don't have the necessary funds now, start a systematic savings program, such as through an automatic payroll deduction to build your emergency account.
  
  

Purchasing Insurance

• Insurance may seem like a frivolous expense, but you'll be glad you have it if the need arises. Important types of insurance include disability, health, homeowners or renters and auto coverage. If you have people who depend on your income, carrying life insurance may be essential to their survival in the event of your death. The best place to purchase insurance is often from your employer if available, as employer-sponsored group coverage is usually less expensive than purchasing individual policies.
  
  

Preparing a Budget

• You'll never know how much money you're really spending unless you keep track of each dollar. Preparing a budget helps you identify areas where you can cut back on expenses, and the money you discover can be used to finance your emergency fund, reduce debt or cover your insurance needs. Sticking to a budget can be a challenge, especially if you're used to spending freely, but you'll have a much better chance of having the funds available to ensure your financial survival.