For those who are new to it, financial planning can be daunting. Going from simply paying the bills and saving a bit to structuring your spending habits takes time and effort. Yet, with a few practical steps, better money management becomes not only achievable but routine. Discover some tips for getting started below.

How to Spend & Save Wisely

1. Make a Budget

Financial planning begins by creating a budget. To determine yours, tally up your expenses as well as your income. Ideally, you should be setting aside at least 20% of your income for savings, retirement, and debt payments, while 30% can go towards fun expenses, like going out. The rest will go towards cost-of-living expenses, such as rent or a mortgage.

2. Try a Cash-Exclusive Spending Plan

If you’re exceeding the 30% spending rule with your credit or debit cards, consider putting yourself on a cash-only plan for a little while. It’s often less convenient to carry and pay with cash—but that will work to your advantage if you’re trying to save. Plus, it’s easier to see where your money is going in real-time.

3. Consider Your Subscriptions & Services

There seems to be a subscription for everything nowadays—from streaming services to meal kit deliveries. All of these costs can add up quickly, however. Consider which ones you could do away with. You probably don’t need both a gym membership and multiple fitness apps, for example.

4. Set Specific Goals

Creating a budget is the perfect framework for working towards financial milestones. To ensure you stay on track with meeting them, set goals that have a specific number and date assigned to them (pay off $5,000 of debt by the end of the year, for instance). This will allow you to break them up into smaller, achievable steps.

5. Start Saving for the Future

You may be contributing to a 401(k) through your employer, but to have a truly comfortable retirement, consider investing. There are many options available, such as Roth IRA contributions, so speak with a financial advisor if you’re unsure of where to start.

Whether you’re just getting started with your financial planning or you’re gearing up for an approaching retirement date, Christina Mendoza & Associates LLC Insurance & Financial Services can help. Serving San Antonio, TX, this team specializes in comprehensive financial services individualized to meet each client’s unique needs. Visit their website to find out more about how they can help you safeguard your future with financial stability. Call (210) 389-5289 to set up an appointment.