You don’t need a higher-paying job or a large inheritance to improve your finances. For many people, managing money better can help them spend less, save and invest more, and reach financial goals that once seemed out of reach.  

Even if your finances feel stuck and hopeless, there are steps you can take to improve your situation. Here are seven tips to help you get started:  

1. Track your spending to improve your finances. 

If you’re not sure where your money goes each month, chances are there’s room for improvement in how you spend.  

Better money management starts with knowing where your money is going. Use a money management app, like MoneyTrack, to track your spending in different categories. This will help you see how much you’re spending on non-essentials like dining out, entertainment, and even your daily coffee. Once you understand these habits, you can make a plan to cut back.  

2. Create a realistic monthly budget.  

Use your current spending habits and take-home pay to create a budget you can realistically stick to.  

It doesn’t help to create an overly strict budget that requires huge lifestyle changes, like never eating out if you currently get takeout four times a week. Build a budget that fits your life and spending patterns, but also encourages better habits, like cooking at home more often. A budget will only work if it’s realistic and achievable.  

3. Build up your savings—even if it takes time.  

Start an emergency fund that you can use when unexpected expenses come up. Even if you can only save a small amount at first, this fund can prevent you from having to borrow money at high interest rates or from missing bill payments.  

Also, make regular savings a priority to strengthen your financial situation in case of job loss. Consider setting up automatic transfers to your savings account to make it easier to build up this fund.  

4. Pay your bills on time every month.  

Paying your bills on time is a simple way to stay on top of your finances. It helps you avoid late fees and ensures that your essential expenses are covered first.  

A strong payment history can also improve your credit score, which can lower your interest rates on future loans.  

5. Cut back on recurring charges.  

Do you have subscriptions or services you don’t use? It’s easy to forget about monthly charges for streaming services or apps that you no longer need.  

Check your bank account for these recurring charges and cancel any unnecessary subscriptions. This is an easy way to keep more money in your pocket each month.  

6. Save up cash for big purchases.  

While loans can be useful for major purchases like a house or car, for other large purchases, it’s best to save up and pay in cash.  

Paying in cash avoids the extra cost of interest and prevents you from going into debt for months or years. In the meantime, your savings can earn interest in the bank, helping you save more toward your goal.  

7. Start an investment plan. 

Even if you can only invest a small amount, putting some of your money into investments can help it grow over time.  

If your employer offers a 401(k) match, take advantage of it—it’s like free money. You can also consider opening a retirement or other investment account to start growing your wealth.  

The path to improving your finances begins with changing your habits. Some changes may be harder than others, but if you stick with it, you’ll develop strong money management skills that will benefit you for life. Plus, you’ll have more money to spend and save.