Starting a budget is one of the most impactful steps you can take for your financial health. We recommend beginning with the popular 50/30/20 rule: allocate 50% of your after-tax income to needs (rent, groceries, utilities, insurance), 30% to wants (dining out, entertainment, subscriptions), and 20% to savings and debt repayment.

Start by tracking your expenses for one month to understand where your money actually goes — you may be surprised by the results. Then use our Budget Calculator to create a personalized spending plan based on your income. Our blog article on Budgeting Strategies offers additional tips including how to handle irregular income, reduce discretionary spending, and automate your savings. The key is consistency — even an imperfect budget is better than none.

Financial experts generally recommend saving three to six months of essential living expenses in an easily accessible emergency fund. Essential expenses include rent or mortgage payments, utilities, groceries, insurance premiums, minimum debt payments, and transportation costs.

If you have a stable job with predictable income, three months may be sufficient. If your income is variable, you are self-employed, or you are the sole earner in your household, aim for six months or more. Start small if needed — even saving $500 to $1,000 provides a meaningful buffer against unexpected expenses like car repairs or medical bills. Use our Emergency Fund Calculator to determine your specific target based on your monthly expenses, and read our guide on building an emergency fund for step-by-step strategies.

The short answer is: as early as possible. Time is the most powerful factor in building wealth through investing, thanks to compound growth. When your investment returns generate their own returns, the growth accelerates exponentially over time. For example, investing $200 per month starting at age 25 with a 7% average annual return could grow to over $525,000 by age 65. Waiting until age 35 to start the same investment would yield roughly $244,000 — less than half.

Before investing, make sure you have an emergency fund and have addressed any high-interest debt. Then start with tax-advantaged accounts like a 401(k) (especially if your employer offers matching contributions) or a Roth IRA. Use our Compound Interest Calculator to see how your money could grow over time, and explore our Investing Basics article for a beginner-friendly overview.

Two proven strategies for paying down debt are the snowball method and the avalanche method. With the debt snowball, you pay minimums on all debts and put extra money toward the smallest balance first. Once that is paid off, you roll its payment into the next smallest debt, creating momentum and quick psychological wins. With the debt avalanche, you focus extra payments on the debt with the highest interest rate first, which saves the most money on interest over time.

Both methods work — the best choice depends on whether you are more motivated by quick wins (snowball) or mathematical efficiency (avalanche). Use our Debt Payoff Calculator to compare both strategies with your specific debts, and read our guide on debt reduction strategies for tips on negotiating lower interest rates and consolidation options.

The amount you need for retirement depends on several personal factors including your desired lifestyle, expected expenses, healthcare needs, Social Security benefits, and planned retirement age. A common guideline is to aim for 70-80% of your pre-retirement annual income for each year of retirement. Another approach is the 25x rule: multiply your expected annual retirement expenses by 25 to estimate the total savings needed (based on a 4% safe withdrawal rate).

For example, if you expect to spend $50,000 per year in retirement, you would target $1.25 million in savings. Use our Retirement Calculator to create a personalized estimate based on your age, income, current savings, and goals. Our Retirement Planning Guide provides in-depth strategies for 401(k) optimization, IRA contributions, Social Security timing, and catch-up contributions for those over 50.