Times are tough for people all over the world. The economic crisis has hit many people hard and as a result homes have been lost as well as jobs and income streams. Although the future is looking a little brighter many people have had to tighten their belts as they realize that they have accumulated debts that have to be repaid. Financial institutions have wavered over the past few months and people have wondered how they can regain control of their finances under the current economic conditions.

The first thing that a person should look at is their financial situation. What exactly is coming into a household and where is the money going out? By examining expenses and cutting back on items that are a luxury and not a necessity people can start to get a handle on their money. If credit card debts or unsecured loans are piling up with high interest rates it is a good idea to speak to a consumer credit and debt counselor and determine whether a debt consolidation may be necessary to help cut costs and relieve some of the burden of money seeping out of the budget each month.

After taking an inventory of the available money and restructuring unsecured debt financial experts recommend starting a savings account and putting money aside each month. Even a little money is important but the experts recommend an amount of 10 percent of each paycheck being set aside for savings. After establishing a savings account financial experts are recommending that people build up an emergency fund of at least three months worth of living expenses and that those expenses cover all of the bills for everything that is currently being budgeted for. Although this may take a year or longer to save up it is a great relief to have a dedicated emergency fund set aside in the event of job loss or other monetary need.

By cutting back on the things that are luxuries like eating out, going to the movies and shopping for clothes people can begin to heal their own economic setbacks and learn to manage their expenses better. The path to financial freedom is a long and disciplined road that requires a person to think ahead for their life and no longer live in the moment. By taking steps to relieve debt and start a savings plan American consumers can free themselves of their monetary short comings and live as people in one of the worlds wealthiest country should live.