Ready, set, go! Win the race to financial freedom

Get moving: Start by spending less than you make — even if, week to week, you feel like you’re behind the eight ball. You’ll get used to it sooner than you think.

Take the lead: Track your spending. Consider using a budgeting app to help.

Cross the finish line: Employ a simple system for the long term, such as the “50/30/20 rule”: Spend 50% on essentials, 30% on discretionary items, and 20% on priorities (e.g., retirement, savings, debt paydown, etc.).

Get moving: An important first step is to keep one month of living expenses in the bank — and add to it whenever you can.

Take the lead: Next, keep three months of expenses saved and make a deposit every time you get a “bonus” — like a tax refund.

Cross the finish line: Finally, continue to set aside funds until you’re able to cover six months of expenses. Consider setting up auto-transfer to feed a savings account every payday until you get there. Explore your savings account options at BankofAmerica.com.

Get moving: If you only pay the minimum on your credit card, it takes you much longer to pay it off, so pay a bit extra each month. Every dollar over the minimum payment goes toward your balance, and the smaller your balance, the less you will pay in interest.

Take the lead: Make the minimum payment on all your cards except the one with the smallest balance — throw every dollar you can at that one until it’s paid off. Then repeat with the next card in line. With this tactic you can aim to be debt-free in three years or less.

Cross the finish line: Get a 0%-interest card and transfer your balances to it for the life of the offer (usually 12–18 months). Then pay it off before the interest spikes. To find the right credit card for your situation, try the Bank of America Credit Card Finder. And remember — once you’re debt free make sure to stay that way by paying off your balance every month!

Get moving: Make sure you contribute at least 3% of your annual income to your employer’s 401(k) plan. And if the plan offers a matching contribution, make sure you contribute enough to get the full match amount.

Take the lead: Sign up for your plan’s automatic increase program,1 which lets you increase your 401(k) contribution gradually on a regular basis. Set a personal goal to increase your contributions to 10%, or more.

Cross the finish line: Contribute the max to your 401(k) every year — for 2017 that means putting in $18,000, plus an additional $6,000 if you are age 50 or older (subject to plan limits). If your plan is through Merrill Lynch, log on to Benefits OnLine^® to increase your contributions today.