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When you’re in the midst of a difficult financial situation, it may feel like there is no way out. While you may feel discouraged about the current state of your finances, you can take small steps to improve your situation. Small habit changes can make a big difference in improving your financial future. Consider these changes if you want to improve your relationship with money.

1. Learn to budget

If you’re not following a budget or monitoring your spending, you likely don’t realize how much money you’re spending. Budgeting can help you be more aware of where your money is going. You can minimize overspending and find ways to reduce your spending to free up extra cash for other financial goals. Budgeting apps are an excellent tool, especially if you’re new to budgeting.

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2. Open a high-yield savings account

Saving up for future expenses is an excellent way to be financially prepared. But it’s essential to stash your extra cash in the right place. If you’re keeping your savings in a checking account, you’re missing out on interest. By opening a high-yield savings account, you can earn interest and get rewarded for savings. Don’t miss out on free money.

3. Automate your savings

Many people want to save more but struggle to remember to do so before they spend their entire paycheck. If you struggle with saving, this technique may be for you. Automating your savings can take the manual work out of saving. You can set up automatic transfers to regularly send money from your checking account to your savings account. This habit change can save time and help you stay on top of your savings goals.

4. Pay more than the minimum amount due on your credit card

Credit card debt is an expensive problem to have. You’ll be charged interest if you don’t pay your entire balance off each month. Many people accumulate credit card debt because they pay only the minimum amount due on their credit card bills and the debt and interest continue to grow. If you can afford to do so, paying your entire balance off every month is best. By getting in the habit of paying off your credit card balance in full, you can avoid credit card interest charges.

5. Build an emergency fund

You never know when an unexpected expense will come your way. Paying a costly unplanned bill can be challenging if you live paycheck to paycheck and have minimal savings. An emergency fund can help you prepare for such situations. Having extra money available when you need it most can ease your stress. If it feels impossible to build your fund, start small. If you save $100 a month, you’ll have $1,200 saved in a year. That’s much better than $0 saved.

6. Regularly review your finances

Many people struggle to stay on top of their personal finance affairs because they ignore their situation. But ignoring your financial struggles won’t help you. It’s essential to check in on your financial accounts and bills regularly so you can make a plan and take action. Consider setting aside 20 to 30 minutes monthly to review your finances so you’re in the know.

7. Wait 24 hours before checking out online

Online shopping is convenient but can lead to overspending if you’re not careful. Here’s what to do to reduce your online shopping trips. The next time you fill up your online shopping cart, step away from your computer or phone and wait 24 hours before checking out. Doing this gives you extra time to think through the decision and may help you reduce impulse purchases.

It's never too late to make changes

Don’t give up if your current financial situation is less than ideal. You can set yourself up for success and improve your situation by committing to making small changes in your daily life. Over time, these changes will add up and improve your finances in a big way.

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This article was written by Natasha Gabrielle from The Motley Fool and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].