If you haven’t done so already, it’s important to come up with a personal budget for your finances. Here are some steps to get started:
Step One – Determine what your income is.
Step Two – Figure out what your expenses are.
Step Three – Make lists of what you spend each day, week, month. Then divide your expenses into needs vs. wants and prioritize.
Step Four – Make your savings account a priority. Set aside a rainy day fund that can cover three months of expenses if necessary. Eliminate “wants” from your budget until you reach this savings goal, then begin saving for future expenses such as retirement, tuition, or healthcare.
Step Five – Assess your financial situation monthly. Update your budget to reflect any changes in income or expenses.
As you begin meeting financial goals, you can slowly start introducing “wants” back into your monthly budget.