Assess Income and Expenses: Start by calculating your monthly income from all sources. Then, list your fixed expenses (rent/mortgage, utilities, etc.) and variable expenses (groceries, entertainment, etc.).
Categorize Spending: Divide your expenses into categories such as necessities, discretionary spending, and savings. This categorization simplifies tracking and highlights areas where you can cut back.
Whether it’s building an emergency fund or saving for retirement, allocate a portion of your income to each goal.