5 Money Tips That Could Save You From Ever Going Broke

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A common concern for many Americans is that they will eventually go broke. Whether they are just starting out or nearing retirement, the fear of running out of money can loom large.

While there are no 100% sure-fire ways to ensure a stable financial future, there are some tried-and-true tips that can help prevent economic despair.

Here are five steps that may save you from going broke in the future.  

Set a Budget

Almost all money experts agree that setting a budget is critical to ensuring long-term financial stability. Taking time to write down any money that is coming in and any money that is going out is a game-changer.

According to the experts at the consumer credit reporting company Experian, setting a budget is crucial because it enables individuals to avoid overspending, bring financial goals within reach, prevent or overcome debt, and prepare for emergencies. 

Build an Emergency Fund

Another way to help keep money in the bank (or in the freezer) is by building an emergency fund. For beginners, Fidelity recommends starting by trying to save $1,000. The investment company then suggests building the fund to cover three to six months of expenses. 

A 2025 U.S. World News & Report survey revealed that 42% of Americans do not have an emergency savings fund and that 40% would be unable to cover an emergency expense of $1,000 if it came up. This means that unexpected car repairs or a pricey medical bill could result in financial ruin for a large portion of people. Starting small by automating a portion of each paycheck towards savings can help to ensure that surprises aren’t as shocking.

Pay Off High-Interest Credit Cards

While credit cards are convenient, they can also spell out big problems if they aren’t paid off. As reported by the Federal Reserve Bank of New York, credit cards are the primary source of unsecured borrowing, and 60% of borrowers carry a balance month over month. On average, these cards carried an annual interest rate of 23%. 

Making only minimum payments on these cards generally means that it will take years before the debt is paid off. Prioritizing the payment of cards with the highest interest rates first is considered a sound strategy for achieving long-term financial stability. As cards are paid off, the money saved can then be used to pay off lower-interest cards or other debt, before eventually being used for savings.

Automate Savings

Set it and forget it is an easy way to build savings with little to no effort. Automating savings can help ensure that money from each paycheck is being set aside to help reach financial goals, including establishing an emergency fund.

Many banks offer free programs that help consumers automate savings, whether it’s a portion of every check or rounding up the change for each purchase made.

Try a Side Hustle

Finally, if money is tight and one job isn’t enough to cover living expenses, it might be time to consider a side hustle. People of every age are finding ways to make money without interfering with their 9-to-5. Side hustles can be anything from freelance writing to walking dogs.

The extra income can be used to help pay bills, build a retirement fund, or put towards a vacation. Ideally, however, any extra income is used to pay off debt and build an emergency fund first. Taking these steps can help make the difference between being one paycheck away from going broke and living at least somewhat comfortably.

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