Financial experts typically recommend saving at least 20% of your income. However, the exact amount depends on your financial goals, age, and current financial situation. If you're working toward a specific goal like a down payment on a house or early retirement, you may need to save more.

The 50/30/20 rule is a simple budgeting framework that suggests allocating:

• 50% of your after-tax income to needs (housing, utilities, groceries, transportation)
• 30% to wants (dining out, entertainment, hobbies)
• 20% to savings and debt repayment

Strategies to reduce expenses include:

• Track your spending to identify areas where you can cut back
• Create meal plans to reduce food waste and dining out costs
• Negotiate bills like cable, internet, and insurance
• Cancel unused subscriptions and memberships
• Use public transportation or carpool to save on transportation costs
• Implement a 24-hour waiting period for non-essential purchases

It's good practice to review your budget monthly when you first start budgeting. Once you have a stable budget, you can review it quarterly. However, you should revisit your budget whenever there's a significant change in your income, expenses, or financial goals.

Fixed expenses remain the same each month (rent/mortgage, car payment, insurance premiums). Variable expenses fluctuate (groceries, dining out, entertainment). When creating a budget, it's easier to plan for fixed expenses, while variable expenses require more ongoing management and adjustment.