Establishing a budget can be daunting, but it doesn't have to be. There are plenty of tools that can simplify the process. Rated as one of the top budgeting apps of 2021, the Personal Capital app is an excellent resource for tracking your finances. Link everything from your checking, savings, investment, loan and retirement accounts to see your cash flow and financial picture all in one place.
This type of free app can also help you figure out your net worth - what you have minus what you owe. While more than half of surveyed Americans say their net worth is a critical component of their financial health, fewer can estimate theirs. "If you can't measure it, it's very difficult to gauge where you're going," Ohno said.
Build a rainy-day fund
In an emergency, your financial safety net can determine your preparedness. Whether you endure job loss, car trouble or a medical emergency, your safety net can give you extra financial cushion when the unexpected happens. If you don't have one already, there's no need to panic. You can build your emergency fund through automatic deposits to your savings account and by cutting out unnecessary expenses. If you can, save 3 to 6 months' worth of expenses.