It’s time to stop feeling stuck and start steering your financial ship with confidence. Whether you’re just breaking even or facing mounting pressure from rising costs, practical steps can help you reclaim a sense of mastery over your money.

Current State of Household Finances

On the surface, many Americans report higher balances than before the pandemic, but that picture masks stress and uncertainty. By May 2025, average checking and savings balances were 23 percent higher than in 2019, yet cost pressures have slowed long-term growth.

In a recent Marist poll, 33 percent of families said their finances worsened over the past year, while only 27 percent saw improvement. According to Pew research, 57 percent rate their financial health as only fair or poor. Clearly, there’s room for improvement and an opportunity to take back control.

Balancing Income and Expenses

Nearly half of Americans report that their income approximately matches their monthly expenses. About 29 percent say expenses exceed income, and only 27 percent enjoy a surplus. Among older generations, Baby Boomers and the Silent Generation are most likely to report a surplus (31 percent), while younger groups lag behind.

When expenses outweigh income, families resort to various tactics:

• Cutting nonessential spending
• Dipping into savings
• Relying on credit cards
• Borrowing from friends or family

Moving from break-even or negative cash flow to a surplus requires disciplined budgeting and clear goals. By focusing on where every dollar goes, you can find hidden opportunities to save.

Building Your Emergency Fund

An emergency fund is your financial safety net. Experts typically recommend saving three to six months of living expenses. Yet only 48 percent of Americans report having enough set aside for three months, with wide disparities by income level.

Lower-income households are far less likely to have a rainy-day fund than upper-income peers—27 percent versus 80 percent. Building a buffer can feel daunting, but a few key strategies can accelerate progress:

• Automate transfers to a dedicated savings account
• Start small with micro-savings techniques
• Redirect windfalls and bonuses into your fund
• Temporarily trim discretionary expenses

These steps create a strategic financial safety net that shields you when unexpected costs arise, reducing reliance on credit and stress.

Managing Debt and Reducing Stress

Credit card debt remains a major burden, with 33 percent of Americans holding more on their cards than in emergency savings. Lower-income households are especially vulnerable, often borrowing from friends and family or missing rent payments.

Prioritizing debt payoff can take many forms, but focusing on high-interest credit first can save thousands in interest payments. Consider these alternatives to high-interest borrowing:

• Negotiate lower interest rates with creditors
• Use balance transfers or low-interest personal loans
• Tap into community credit or cooperative lending
• Boost income with side gigs or freelance work

Addressing debt directly offers a clear path to financial freedom and can dramatically reduce the day-to-day strain of money worries.

Empowering Young Adults and Future Outlook

Gen Z and Millennials face unique challenges: higher living costs, declining parental support, and worries about retirement readiness. Over 55 percent of Gen Z lack three months of emergency savings, and nearly half don’t expect to save adequately for retirement within five years.

Despite these hurdles, 72 percent of young adults have taken steps to improve their financial health—over half bolstered savings and a quarter tackled debt. When stress mounts, 69 percent check their balances and 64 percent create or adjust a budget. These proactive habits lay the groundwork for long-term success.

By normalizing setbacks and celebrating small wins, you can craft a personalized roadmap to independence. Start by tracking real spending, setting realistic milestones, and automating progress toward your goals.

Ultimately, reclaiming control of your finances is about mindset as much as money. Embrace your power to decide how every dollar works for you. With clear strategies, disciplined habits, and a support network, you can turn uncertainty into momentum.

Your money, your rules: the path to financial confidence starts today.