In the current scenario of the economy, employees are literally living paycheck to paycheck. The living expenses are rising by the day without any exceptional salary hike. Under such circumstances, there is hardly any money left for emergencies. Relying on credit cards is however a temporary fix that will not help you in the long run. If you wish to truly have a healthy credit score and some savings to help on a rainy day, here are some steps that will help.

· Make Savings Automatic: Do you ever think to yourself, I will put the leftover money from my salary into savings? Chances are, you end up spending all that money which you could have easily saved. If you have tough time-saving money, then it is good to make it automatic. The money will be transferred from your bank account automatically as soon as you receive your salary. Regardless of whether you want to or not, you will save yourself from the unnecessary expenses. Once this becomes a habit, you can increase the amount you wish to save every month.

· Make Your Savings Inaccessible: The savings account you create should ideally be in a bank other than that of your salary account. The more access you have to it, the more vulnerable you will become. Having easy access gives you a reason to spend it for even when it’s not required. Moreover, if an emergency strikes, you will always have some cash to fall back to.

· Identify the Must Haves and Spend Only on Them: The absolutely necessary expenses include housing, insurance as well as food. You certainly cannot avoid these expenses. However, things like going out for a meal, your shopping expenses and all the travel indulgences can be controlled. A sure way of eliminating costs is to identify which expenses are a must. Once you have catered to these expenses, make it a point to rethink the other expenses. If you find yourself in a bad credit position, find out if you can move to an apartment which is less expensive.

· Monitor Your Savings: The best way to not overspend is to monitor your expenses on a daily basis. Allocate a single debit or credit card for all the purchases and keep a track of it. It is funny how quick the small purchases add up to a lot of money being spent each month. Save yourself from the ordeal of borrowing from others or using credit cards and monitor it right from the beginning. When there is an emergency, you would simply not have any cash to support you. If you are getting any bonus money make it a point to put it in savings instead of splurging.

Following the above habits will surely be difficult if you have not saved ever before. However, it is indeed a good start and you will get the discipline right with time. Having money to spare from your savings will stop you from using more credit cards and getting into unnecessary debts. This, in turn, will improve your credit.