Key Takeaways
- Being financially secure means having enough to cover both daily needs and unexpected shocks - but most Americans, especially lower-income households, struggle to build both at once.
- List your income, expenses, and assets to see clearly where you stand before making changes.
- Track spending, cut nonessentials, and negotiate bills with phone, internet, and insurance companies.
- Boost income when possible. Side gigs, freelancing, or part-time work can ease the squeeze alongside cutting costs.
- Start an emergency fund. Automatic transfers, even modest ones, build a cushion against surprise expenses.
- Prioritize essentials and manage debt. Cover housing, utilities, and necessary loans first; use a snowball or avalanche method to pay down debt.
- Revisit and adjust regularly. Financial plans should evolve as your circumstances change.
- Government assistance programs can ease pressure on tight budgets for eligible households.
- United Way offers free, confidential connections to resources that help build financial stability.
Being financially secure empowers people, relieves stress and worry, and gives individuals and families more freedom. It also means being prepared when life throws extra costs and obstacles their way. Managing daily expenses, preparing for emergencies, and planning ahead are crucial elements of overall well-being, and neglecting any of these goals can spiral into a cycle of financial instability.
What Is Financial Security?
True financial security requires both a steady income and enough savings to avoid crises and build wealth. Households with even a few hundred dollars in savings are less likely to be evicted, miss a housing or utility payment, or need public benefits after a job loss or big income drop.
Yet for low-income households struggling to get by in the current US affordability crisis, those savings can be incredibly difficult to build. Research also shows that debt burdens and racial disparities in wealth compound these struggles for many low-income households, as do barriers to financial literacy.
The scale of the challenge is significant. Almost half of all Americans can't afford the true cost of living, much less build wealth.
Fortunately, community-based social services nonprofits like United Way are there to help households weather storms and prepare for the future.
7 Practical Steps Toward Financial Security
Below are some of the first and most important steps to financial security.
1. Take Stock of Your Current Finances
The first step is gaining a clear picture of where you stand, listing cash on hand, account balances, assets, and skills, then labeling monthly expenses as fixed, flexible, or occasional.
2. Build (and Stick to) a Budget
Start by tracking your income and every expense for a month to see where your money is actually going, then build a detailed budget covering essentials, wants, and savings. From there, look for real cuts. Some tips for saving money include:
- Reviewing subscriptions and canceling anything nonessential
- Negotiating with your internet, phone, and insurance providers for a rate reduction, since many companies will work with customers facing financial difficulty
- Using energy and other utilities more efficiently to lower your bills
- Shopping for groceries strategically: meal planning, comparing prices, and using coupons can meaningfully shrink your highest recurring costs
3. Check Your Eligibility for Government Benefits
Check whether you are eligible for any government benefits, especially if you or a partner has lost a job or experienced a significant reduction in work hours. These can help pay for emergency food assistance, medical coverage, rent or mortgage payments, and other basic living expenses. They can even help with phone, internet, and energy bills.
4. Look for Ways to Boost Income
Beyond cutting costs, consider part-time gigs, freelancing, or side jobs to supplement income and ease financial strain. If you have a high-speed internet connection, look for online work that can save you time and transportation costs. Consider selling some unused higher-value items.
5. Start an Emergency Fund (Even a Small One Helps)
An emergency fund is simply a cash reserve set aside for unplanned but common expenses like car repairs and medical bills. Putting aside even a small amount regularly helps you recover faster from those shocks. Setting up automatic recurring transfers into savings is one of the easiest ways to build the habit consistently.
6. Prioritize Essential Bills and Tackle Debt Head-On
When money is tight, make sure your most important obligations - housing, utilities, and necessary loans - are covered first to avoid late fees and service disruptions. From there, a debt snowball or avalanche approach can help you pay down balances more efficiently while avoiding missed payments and penalties.
7. Revisit the Plan Regularly
As circumstances change, revisit your plan often, adjusting as you learn more or gain access to new resources. Once your income stabilizes, focus on replenishing savings and rebuilding wealth.
You Can Find Local Help Through United Way
You don't have to navigate all of this alone. United Way offers vital lifelines that help working households build long-term financial stability. This includes connections to essential local resources like housing assistance, food assistance, healthcare, childcare, and help with utility bills. Contact your local branch to learn what's available in your community.
Get Help Achieving Financial Security With United Way of York County
United Way of York County in Pennsylvania assists working households on their journey toward financial stability. To meet the needs of the ALICE (Asset Limited, Income Constrained, Employed) populations, we are embarking on an issue-focused strategy to create a transformational impact for workers. We also offer workshops designed to educate and strengthen households.
Join us for the next installment of ELS Knowledge Share, hosted by our Emerging Leaders Society! Each session features a unique and meaningful financial literacy topic for emerging and mid-career professionals.
You can also build confidence in your finances with our free Rise United community workshops. This exclusive financial empowerment series will give you the tools and confidence to take control of your finances.
If you're able, you can help your ALICE neighbors and friends with a donation. Gifts to the United Way of York County Impact Fund are dollars that stay in York County and impact lives where you live and work. Please consider giving today!