You don’t need a degree in finance to learn how to be smart with money. Creating a budget, using credit wisely, and saving your money can go a long way in helping you build a strong financial future.

Why Is Budgeting Important?

A budget keeps your spending in check. It helps you live within your means, put money aside for savings, and pay off your bills. Follow these easy steps below on how to make a budget:

Calculate your monthly income after taxes. Look at your monthly paycheck after your taxes, insurance, 401k savings, and other deductions have been taken out. This is how much you can afford to budget for each month.
List your typical monthly expenses. Now list out everything that you usually spend money on each month. This includes your rent or mortgage payment; utilities like water, gas, internet, or electric bills; medical expenses including medications and doctor’s visits; debt or credit payments; and entertainment costs like streaming subscriptions or basic needs; transportation costs, groceries, clothing or eating at restaurants.
Split your budget into your needs and wants. Aim to spend 50% of your income on your needs, 30% on savings and debt, and 20% on wants.¹ Depending on your finances, you might spend more or less in a certain category, but make sure that the bulk of your budget goes toward needs and savings versus wants.
Write down everything you spend. That means every utility bill, parking fee, movie ticket, and even your daily coffee. Tracking your expenses can help you identify where you’re spending most of your money, which will make it easier to see where you can cut down.

These days, a wide range of budgeting apps, budgeting softwares, and other resources make it easy to track your spending and follow a budget. If that’s too much for you, you can keep tabs on your spending in a spreadsheet.

What Is a Credit Score and Why Do Credit Scores Matter?

A credit score is a rating that tells potential lenders how likely it is that you will pay back your debts on time.

A higher credit score means better interest rates, larger credit lines, and more attractive credit card offers. A lower credit score may mean higher interest rates. If your score is too low, you may be denied a loan or you may need to secure your loans with a deposit.

You can raise your credit score by paying your debts and credit cards on time, paying the full balance instead of the minimum payment, and keeping a low credit utilization ratio. Low ratios mean that you use less than 30% of the credit available to you at any time. A low ratio will also boost your credit score.²

Of course, you can’t raise your credit unless you have a credit history. You need some form of loan or credit card to demonstrate that you can reliably pay back your debts on time.

How Do I Start Saving Money?

It’s important to start saving money as early in your career as possible so that you can build wealth over time. Some good ways on how to start saving money include:

Building Your Emergency Fund. Save up to three to six months’ worth of salary in this fund. If you are laid off or have a medical emergency, the emergency fund will help you pay your bills. Furthermore, if you have a sudden large expense—such as a vehicle breakdown or a leaky roof—your emergency fund can help you pay for it without going into debt.³
Maintain Your Retirement Accounts. The sooner you start saving, the more money you will earn in interest and investments for your retirement. If your employer offers a 401(k) savings plan, consider contributing the maximum amount possible. You can also open an Individual Retirement Account (IRA).⁴
Open a Health Savings Account (HSA) if Eligible. These funds are meant to be used for medical expenses, so you can cover the bills if you become sick or injured. You can open an HSA if you have an insurance policy with a deductible above $1,400 for a single person and $2,800 for a family.⁵

With a little financial planning, anyone can become financially savvy. If you want more information, try talking to a financial planner at your local bank. There are also many apps and online resources available to take the pain out of budgeting and saving.

If you’re looking for a place to start saving your money, Synchrony Bank offers convenient online banking with competitive high-yield savings accounts to qualified applicants.

If you are looking for an option to help manage your medical bills, consider financing through the CareCredit credit card. The CareCredit card is an easy way to pay for health and wellness care and offers promotional financing options.* To apply go to carecredit.com/apply.