Do these 7 money moves and you could be ahead of most Americans financially

Simply put, most American families are either not saving anything or saving relatively small amounts each month.

Fortunately, personal finances are about more than just income and costs. Your financial situation also depends on factors like behavior, planning, and spending habits.

That means there's always room for practical adjustments that help improve your financial position over time.

Here are seven money moves that can help strengthen your financial progress.

1. Automate your finances

Like any other habit, saving and investing becomes easier when you don't have to rely on willpower alone to make it happen.

Fintech startups and app-based tools have introduced a wide range of features that can round-up your purchases and save the difference or automatically transfer a portion of your paycheck into savings or investments each month without any manual effort.

Such automations can increase the likelihood of hitting your financial targets, according to research from the Consumer Financial Protection Bureau Office of Research (4), which has found that automatic savings mechanisms significantly improve savings outcomes.

2. Build an emergency fund

As a general rule of thumb, you should have three to six months of living expenses saved up for emergencies. However, roughly 59% of U.S. adults had less than enough to cover three months, according to a US News survey (5). Nearly 33% could cover only one month or less.

Simply put, saving even a few thousand dollars for emergencies puts you ahead of many Americans. If you can save enough to go without a paycheck for six months, your finances are considerably stronger than most people's.

3. Start investing early, even if it's a small amount

The power of compounding depends not just on the size of your contributions but also on how long you allow your investments to grow.

For instance, saving just $200 a month may not seem like much, but if it's invested in a fund that delivers 8% annual growth over 45 years, it can grow into about $927,000.