Americans With Less Than $5,000 in Savings Should Do These 5 Things

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1. Get Clear on Your Monthly Expenses

You can’t fix what you can’t see, right?

Knowing where every dollar goes each month is the first step to taking control of your money.

Here’s what you can do to make it clear and simple:

• Track everything. From rent to your Starbucks runs. It’s wild how small things add up.
  
• Group expenses into must-haves (rent, food, bills) and nice-to-haves (streaming, takeout).
  
• Use color codes or a notebook if apps overwhelm you. Whatever helps you see the full picture.
  

👉 Here's How You'll Do It: Write down every single expense for 30 days, then total each category to see where your money really goes.

Make It Easy: Consider using a budget planner notebook with pre-labeled sections for bills, groceries, and extras to stay consistent.

2. Build a Basic $1,000 Emergency Fund

You know that one unexpected bill that always shows up when you least expect it?

That’s exactly why you need a small emergency fund.

Start small and think of it as your “calm down” fund:

• Keep it separate from your checking account so you don’t “accidentally” spend it.
  
• Add small amounts weekly. Even $20 adds up faster than you think.
  
• Use automatic transfers to make saving painless and consistent.
  

👉 Here's How You'll Do It: Open a separate savings account and set up a weekly automatic transfer until you hit $1,000.

Make It Easy: Try a Betterment Cash Reserve Account to build your emergency fund automatically while earning higher interest.

3. Look for Simple Ways to Earn Extra Money

If saving feels impossible, adding just a little extra income can change everything.

And no, it doesn’t mean working two full-time jobs. Small gigs count too.

Here’s how you can make extra cash without burning out:

• Use side hustle apps that fit your schedule. Uber, DoorDash, or TaskRabbit work great.
  
• Sell unused stuff around your home. Old clothes, gadgets, or furniture.
  
• Offer small online services like proofreading or graphic design if you have a skill.
  

👉 Here's How You'll Do It: Pick one gig or app that fits your lifestyle and set a small goal like $100 extra this month.

Make It Easy: Get a wireless phone mount for your car if you’re doing delivery gigs. Makes things safer and easier.

4. Avoid High-Interest Debt at All Costs

Debt is the sneaky little monster that eats your paycheck before you even get to enjoy it.

The best way to stay ahead is to avoid it completely. Or pay it down fast if you already have some.

Here’s how you can handle it smartly:

• Pay off the smallest debts first using the debt snowball method to build momentum.
  
• Avoid new credit card debt unless you can pay it in full every month.
  
• Negotiate lower interest rates or move balances to lower-rate cards when possible.
  

👉 Here's How You'll Do It: List all your debts and start attacking the smallest one first. Then roll that payment into the next.

Make It Easy: Try Undebt.it to plan your debt snowball strategy and track every payoff milestone.

5. Cut Back on Non-Essential Spending

You don’t have to live like a monk, but trimming unnecessary costs is pure gold.

A few small cuts can make a big difference in how much you save each month.

Here’s where to start without feeling deprived:

• Pause subscriptions you barely use. Be honest, you don’t need five streaming services.
  
• Set “spend-free” days each week to reset your habits.
  
• Cook at home more often. Eating out adds up faster than your Uber Eats delivery.
  

👉 Here's How You'll Do It: Check your recurring charges and cancel one or two you barely notice. That’s instant savings.

Make It Easy: Try Rocket Money to automatically cancel unused subscriptions, and spot hidden charges before they drain your account.

📌 SAVE IT FOR LATER! 📌