A majority of the population is plagued with credit card debt, lives paycheck to paycheck, and has limited funds for retirement, but that doesn't mean you have to follow down the same path. With a few tips you can start managing your finances now to not only stay out of debt, but to lower expenses and build a cushion in case of emergencies. Retirement may be the furthest from you mind now, but that doesn't mean it's too early to start saving now to maximize your nest egg for when you are finally ready to walk away from the daily grind.

Stick to a Budget

While creating a budget is the easy part, actually following through is another story. It's no surprise that half of budgets fail as it takes plenty of patience and discipline in order to carefully managing every dollar that not only comes in, but leaves your bank account in a given month. Sure, you can allocate funds in categories such as bills, food, gas, spending, and savings, but the key is sticking to how much you set aside. Using cash instead of credit may be a great option, as this way you can only spend what you have, whereas a credit card there is virtually no stopping you from charging away, unless you hit your limit of course.

Reduce Monthly Payments

While mortgages and student loans are necessities when it comes to being able to fund a home purchase or higher education, with market rates constantly fluctuating that doesn't mean you're stuck in high-interest loans. Due to the massive size of the outstanding balance, lowering your interest rate by refinancing your student loans, or mortgage, can not only lower monthly payments but significantly reduce the amount of interest paid over the life of the loan.

Build an Emergency Fund

You never know what sort of financial curveball life will throw at you, so it's a good idea to be as prepared as possible. By building up a few months' worth of expenses in an accessible account, you can provide a cushion in case there is an unexpected auto repair, medical or vet bill, or your furnace needs an emergency repair in the winter months. Sure, it will take time to build up this account, but even if you're on a paycheck-to-paycheck routine, starting out small is the first step.

Limit Unnecessary Expenses

It's nice to stop for coffee on the way to work every morning, or take the family out to dinner to avoid cooking, but those costs can quickly add up and put a dent into the monthly finances. By taking a trip to the grocery store and planning out meals for the week you can watch the significant savings start to add up almost immediately. While it may not be realistic to pack every lunch and brew your own coffee every morning, even limiting going out once or twice a week can still free up enough extra money to fund your emergency account, continue to pay down debt, and increase retirement contributions.