Plan your monthly budget and see where your money is going
The 50/30/20 rule is a popular budgeting method: 50% of your income goes to needs (rent, food, utilities), 30% to wants (dining out, entertainment), and 20% to savings and debt repayment. It's a simple framework to get started with budgeting.
Most financial advisors recommend spending no more than 30% of your gross monthly income on housing. This includes rent/mortgage, insurance, and property taxes. If you're spending more, you might be "house poor."
Aim to save at least 20% of your income. If that seems impossible, start small—even 5% is better than 0%. The key is consistency. Build an emergency fund first, then focus on retirement savings.
Track every expense for a month to see where your money goes. Use apps or spreadsheets. Be realistic—don't set a budget so strict that you'll quit after a week. Review and adjust monthly. Budgeting is a skill, not a one-time task.