If you have no savings, life can be stressful. When you have a financial emergency, and your first thought is ‘I have no savings,’ it can be a scary moment. As a matter of fact, a growing percentage of Americans have no savings either, and so this feeling is quite common for many.
In addition to the stressful feelings of having no savings, if you are starting from scratch, the idea of building a solid financial future might seem daunting. However, the good news is that it is possible to build savings from any point, even if you have none right now.
It’s important not to beat yourself up over your past financial mistakes. Instead, focus on moving forward and taking control of your finances. If you are ready to learn more about building your financial future, then continue reading.
1. See where you stand
The fact that you want to work to improve your financial future is a big step in the right direction. Now that you are ready to take control of your finances, it is time to take a closer look at your financial life.
In order to better understand your current financial situation, it is critical to calculate your net worth. First, layout any debts that you have on the table. It is important to see all of your liabilities, or debts, in a single place. Next, tally up your assets. Then simply subtract your liabilities from your assets.
You might be surprised to discover where you stand. If your net worth is negative, that is okay. Many people start building a successful financial future from a negative net worth. If you find that you have a positive net worth, then you are in a better financial position than you thought because you must have savings built-in somewhere.
No matter where you are starting from, it is good to be realistic about your financial future. If you are starting from 0 or a negative net worth, then you should not expect to clean this up overnight. In fact, building a better financial future may be a long road. However, the sooner you start the process, the faster you will reach your destination.