More money more problems, said one American artist. However, it could be worse when you have less and you are barely managing to survive. This situation can easy tip you over since you are ‘living on edge’. According to American Psychological Association, money is a top cause of stress for Americans and a major source of conflict in relationships. You can, however, avoid this by making right money choices. Here under are a few tips to help you put your financial house in order, at least once a year.

Check your withholding

Take control of your cash flow. That starts with looking at your paycheck and finding out how much is being taken out for taxes. The goal is a "goldilocks scenario.” You want that number to be just right so the taxman doesn’t take out too much leaving you with not enough money in the bank. On the other hand, if the tax withheld is too small, you will be stuck with a big tax bill in subsequent months.

Put your savings on autopilot

It is easier to save when you are not thinking about it, and that is exactly what automatic savings plans allow you to do. It is as simple as setting up an online transfer with your bank that moves money from your checking to your savings. Have a transfer set up for every time you get paid and use that money to build your "rainy day” fund, which should equal about six months’ worth of expenses.

Tackle your retirement

There are no loans for retirement, and with defined benefit plans like pensions becoming increasingly scarce it is up to you to stockpile your ‘nest egg’. Commit to saving more right away, even if it is just an additional one per cent, because that little bit will make a difference. According to Fidelity Investments, if a 35-year-old increases his or her contribution by one per cent and then does that again four more times for a total increase of 5 per cent, they will have added a substantial amount per month in retirement.

Get a handle on your debt

The simplest and most effective way to start reducing your debt, be it a credit card debt or bank loan, is to pay as much as you can above your monthly repayments as possible. Continue the practice until the loan has been fully repaid. This will enable you to start a debt-free life, or at least east the debt burden.

Adapted from www.cnbc.com