Have you ever heard the phrase “Money is the root of all evil”? Sounds scary, huh? However, contrary to the beliefs of this quote, we all need money; it is our ticket to survive. Our country’s economic status and the constant surge in unemployment leaves numerous Americans deprived of money. Homes, jobs, incomes and perspectives are being lost, leaving many hopeless and discouraged. Mental agonies over finances, food, bills, and other necessities needed to sustain on a daily basis is becoming the new “norm” for families. But, if a plan was put in place, it could make situations like these a little better to deal with. This is the opportunity to set and build up an emergency or savings fund for circumstances like these.

The key to financial security is not necessarily having a lot of money, but what is needed is a plan (Rye 15). The process of financial planning begins creating goals. These goals can be short or long term, and in some cases, both. Financial planning is by definition a prospective exercise. Since we cannot see the future, we have to make certain assumptions about what may occur, then plan for contingencies (Ernst and Young 12). Simply stated, you must identify your financial goal(s). For example, you may want to save unforeseen predicaments, stable living costs, or healthcare to name a few.

The next step is to prioritize expenses. This separates what is most important from what you can do without. You may ask yourself the following questions: What is your monthly income and household expenses? Do you have more credit cards than needed? How much debt do you owe? Do you buy unnecessary things just because? If total monthly costs exceed income, you may need to cut expenses. Paying the mortgage more than likely takes front seat in contrast to dining out three times a week.

Once expenses are narrowed down, you will need to know how you spend