We all face the challenges of today's economy. While things are inevitably going to be different, dealing with the changes is only a matter of anticipating them and protecting ourselves accordingly. Achieve financial security for yourself and your family by following the basic steps below.

Back to Basics -- Five Steps to Financial Security

1. Create a budget - knowing where your money is going will empower you.
* Be prudent with your spending. Write down everything you spend each month and cut back on non-essentials.
* Apply these savings toward reducing your credit card debt. Start by paying off your high-interest cards first.
* Explain to your family that everyone needs to contribute to the expense cutting. Making it a family effort will increase everyone's willpower!
* Use cost-cutting strategies to make the most of your budget. For example, pay in cash and remove credit cards from your wallet. Re-evaluate extra phone and television features. Or, consider eating at home more often, skipping the movie out and enjoying a night of board games with your family.

2. Begin an emergency cash fund.
* Create a savings account and resolve to pay yourself first by setting aside 5 to 10 percent of your salary each month.
* Automatically transfer money from your checking account so that you're not tempted to spend the funds elsewhere.
* Aim to save 3 to 6 months of living expenses in the account for emergencies.

3. Pay down your credit cards.
* Credit card debt is the number one obstacle to a secure financial future, and knowing your credit score is essential.
* You're allowed one free credit check annually with each of the major credit bureaus: Experian, TransUnion and Equifax.
* Check your credit score, it determines your interest rates on loans and credit cards, and may help to save you money throughout your life.
* Check your report for errors and report any immediately. Bureaus are required to investigate and correct them once you report them.
* If you feel you need further assistance with your credit go to the National Foundation for Credit Counseling at www.nfcc.org.

4. Create a financial plan using life insurance as the foundation.
* Purchase life insurance. It is the foundation of a strong financial plan and can protect your family during an unexpected turn of events, such as loss of life or loss of income.
* Educate yourself. Certain types of policies accumulate cash value that can be used for larger expenses, such as college, while others may be used to help create a legacy of giving that can last for generations to come.
* An insufficient life insurance plan can expose your family to significant financial risks.

5. Optimize your retirement plan.
* Many companies offer a 401(k) plan and may match your contributions. Take advantage of these deferred income tax benefits; you could be missing out on free money.
* If your work doesn't allow you to participate in a 401(k), consider opening up an IRA; or perhaps both. There are different types of IRA's, so before deciding, investigate your options and find the best IRA type for you.
* Remember, these are long-term retirement plans not short-term savings plans, so be patient and give your money time to grow.

These basic steps will help put you on the path to financial security. If you're not following at least three of them, begin today. Once you are on your way you will quickly see how easy it is to incorporate all five into your life.