Are you living paycheck to paycheck or worrying about how you are going to get by every month? Can you remember one year ago, when you told yourself that you were going to get your financial life in order? Are you where you want to be right now or are you looking one year ahead and making yourself the same promises? If you want the assurance that this time will be different, here is what you need to do right away:

First, stop taking financial advice from people who are broke. Studies reveal that you are only as wealthy as your ten closest friends. While the people in your life may be well meaning, if they are broke there is a reason for it. It does not matter if they have degrees in finance or know more about money and building wealth than you do. If they are broke that is all that matters.

Second, confront the reality of where you are now. Unless you are WRITING DOWN everything which goes into and out of your pocket you really don’t know what is going on in your financial life. One of the greatest sources of financial stress is the mere feeling of being out of control and not knowing what is really going on with your money. Writing down your money management habits will force you to confront the reality of where you are so that you don’t have to stay there.

Third, make a decision to stop using credit cards and borrowing money. If you pay them off every month you may as well just get a debit card. Forget about the free air miles and points. Statistics reveal that people spend thirty to forty percent more when they are using plastic. Paying with cash will help you to temper your spending so that you have more to save for emergencies.

Once you get out of debt, starting making it a priority to save money. So many people try to spend their money on bills and then save what’s left. That will insure you to be broke forever. Instead, save the money and just pretend you never made it. Pretend that you had a large expense or a pay cut and adjust your life any way that you have to. Chances are that you are more resourceful than you imagined and when you start saving money first you will find a way to get by without it.

Finally, focus on building a net worth instead of getting a bigger income. Sure, a bigger income can help you build wealth. But not if you don’t adjust the way that you manage it now. It is more secure to have a large nest egg to draw from in case something happens than to have a large income which you could lose anytime.