Many people are trying to stick to their resolutions. Great number of surveys show that the most comon goals revolve around health and fitness, budgeting, personal finances and organization. Resolutions are sign of optimism and a challenge to get better at something and also a belief that it can happen.

For those looking for steady improvement of their financial health, we offer five steps that should help them on their way to financial freedom:

1. Have a goal
Having a plan for your money before you spend it is the best way to keep you on track and a path to a healthy relationship with your money. It's much easier to stay in control of your finances when you're working toward a concrete goal. When you have a powerful goal, it's easier to say no to less important purchases. Learning how to save your money is the next step toward a successful retirement. A good place to start is to put away 10 per cent of your gross income each year for retirement.

Necessities are non-negotiable, so try to spend smartly and adjust your habits until you reach your financial goals.

2. Know your numbers
Great number of people have a good sense of how much money they earn and take home, bur most of them don't know where their money is going. Start taking time to make note of every single expense. Some basic amounts like rent or mortgage, car payments, and basic utilities are almost the same, but food, activities, clothing and other discretionary costs may change every month, depending on your needs. Make sure to keep track and write down every purchase and loose cash you are spending if you want to know and take control of your spending. Keep in mind that you cannot change what you don't know. Don't forget to keep track of your out-of-pocket spending, like takeout lunches, cups of coffee, and other small purchases like packs of gum or candy. You might be surprised how those little things add up.

3. Choose what is essential
Be realistic and choose what you can live without and decide which expenses are essential and most important to you. What's considered essential usually vary from person to person.

4. Be prepared for surprise costs
Think ahead and set some money for rainy days. Your car may need repair, your appliances may need repair or your pet needs help from vet. Most of things like that are unforeseen, but if you start thinking ahead and set a little cash each month for surprise costs, you won't be side swiped by expenses like that.

5. Use your bank accounts strategically
Set up a separate bank accounts with direct deposit instructions to flow in enough money to cover your fixed expenses every month. The rest of the money should go on other account. That way you'll never touch money needed for your necessities. For your "must have" discretionary purchases withdraw only enough cash to cover them weekly or biweekly. Dealing with cash will help you stay on track, because it's much easier to see what's left.

NOTE: Take the guesswork out of budgeting and track your spending. Tracking your expenses can help you understand where your money is going and reveal a lot about your habits.

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