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Money—how much we make, how we spend it—is often fraught with emotion. Those emotions can act as obstacles, making it hard to develop a plan to create a solid financial foundation and build wealth.��

It can be helpful, however, to think about financial goals in incremental steps. The way forward to a stronger financial foundation starts with identifying goals, then breaking those down into actionable, attainable steps. Having a plan in place can help you be more confident about your money and put you on the path to a stronger financial future. Here are four smart money moves to help make your money work for you.��

Prepare yourself for the unexpected��

Unexpected events, like house repairs, medical emergencies, or job loss, can dent even the most carefully planned budgets. That’s when an emergency fund comes in handy. That cushion helps minimize the financial disruption that comes from unexpected costs.��

So, how much should you put into an emergency fund? This can vary depending on your job and what stage of life you’re in. For someone who runs their own business where income might be more unpredictable, it’s ideal to put away more money. In that case, you might want to aim for an emergency fund with six months of income. On the other hand, for someone with a steady job or who is in a family with multiple incomes, three months of income could be enough.

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An emergency fund is just one way to protect yourself when unexpected costs come up. Another financial cushion comes from life insurance, which plays an important role in protecting our loved ones financially. The primary purpose of life insurance is death benefit protection, so your family members don’t have to worry about how to pay the bills if you’re not around. Talk to a financial professional for more information about life insurance.

Maximize your benefits��

Another smart money move is to take advantage of any employee benefits available to you. Depending on the company, those benefits could include matching 401(k) contributions, flexible spending accounts, or student loan assistance.��They also come in the form of discounts, hotel stays, gym memberships, disability insurance, or financial planning assistance. You can ask your company's HR department to see what is available for you.

Pay off debt��

Debt is a common stumbling block for most Americans when it comes to reaching their long-term financial goals. Make a plan to pay off debt, whether it’s credit card debt, car payments, student loans, or medical debt.

There are two common approaches to paying off debt:

• The “snowball approach” means you start with the smallest balance first. The reasoning here is that paying off the smallest balance first gives you a quick reward, encouraging you to move on to other balances.
• The “avalanche method” means you pay off debt with the highest interest rate first because that’s the kind that costs the most to keep.��

Look to the future��

Last, an important part of strengthening your finances is to plan for long-term goals, like retirement. Social Security on its own may not be enough to fund your retirement lifestyle. But saving in tax-deferred accounts, such as a 401(k), allows your money to grow tax-deferred��until you retire, which can help maximize your savings and ensure you’ll have what you need for the future.

For those without an employer-sponsored plan, there’s also traditional Individual Retirement Account (IRA) or Roth IRA accounts, which also offer tax savings and are designed to help people save for retirement.��

An annuity is another way to ensure a steady income in retirement. Annuities are designed to help grow, protect, and manage retirement savings. Outside of pensions and Social Security, annuities are the only financial vehicle that can provide protected lifetime income. There are various types of annuities that provide different benefits. Talk to a financial professional about which option might be best for your circumstances.

Yet another future goal might be saving for your children’s college funds. Putting money into a college savings account has advantages over a traditional bank account because of the ability for your money to grow tax-free over time.

Thinking about money and the future can be stressful. But like many other areas of life, creating a simple, actionable plan to reach your goals can help build your confidence and put you on the path to success.