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Feeling off-track about how you've been handling your money over the past few months? 

 to update your budget, says financial counselor Rita Soledad Fernández Paulino of 

. "You're going to sit down, look at your bank and credit card statements and decide whether that's how you want to continue spending your money." 

Financial experts share actions you can take to help cut costs, pay down debt and save more money. 

Many financial experts advise people to allocate their budgets using the 

. Fifty percent of your take-home income should go toward basic living expenses like housing and groceries. Thirty percent should go toward discretionary expenses like entertainment and clothes. Twenty percent should go toward savings and paying down debt. 

If your proportions are out of whack — say, you're spending way too much of your income on basic living expenses — you may need to slash some of your fixed expenses. That's "anything that's the same amount every month, like your rent or mortgage, car insurance, phone bills and utility bills," says Fernández Paulino. 

They're also often the biggest expenses in your budget, so cutting back on these items is "going to save you so much more money," said Kristin Wong, author of 

Get Money: Live the Life You Want, Not Just the Life You Can Afford

. "They're harder decisions to make, obviously, but they give you more bang for your buck." 

To save on housing, consider living with a roommate or moving to a cheaper place (although, if you relocate to a place farther away from the city, factor in transportation costs). Or maybe you're paying for something you could negotiate down or shop around for, like car insurance or cellphone service. 

Next, identify your variable expenses, says Fernández Paulino. "Those are things you need for your life but vary in cost every month" — like food, gas and electricity. 

Set a target on how much you want to spend on these must-have items — and take action to stay on track. To save on food, eat out less. Check your grocery store for 

, which allows you to buy food in bulk for a lower cost. To save on clothes, 

Now take a look at how you spend your money on discretionary expenses and create a budget for those items. These are purchases that are desirable but unnecessary, such as streaming TV subscriptions, gifts or vacations. 

You can save on entertainment by borrowing 

To avoid the temptation of impulse shopping, make yourself a "buy list," financial planner 

. Put the items you desire on a list. After a predetermined time (like a week or a month), if you still want that thing and it fits into your budget, go ahead and buy it. 

You can also use categories to keep your priorities straight, said personal finance educator Tiffany Aliche in a 

. Before you make a purchase, ask yourself: Do you "need it, love it, like it [or] want it?" Make sure the item you're buying is something you need or something you know will  bring you lasting joy. 

Set aside enough money in your budget every month to pay your minimum debt payments, says Fernández Paulino. "That's your minimum credit card, student loan and car payments." 

However, if you find yourself with extra money in your checking account, this might be the perfect time to start paying off those credit card balances or other debt. "That's going to require you to send in more than just your minimum payments," says Fernández Paulino. "So create a plan." 

Pay off your debts with the highest interest rates first, keeping up with minimum monthly payments on the others at the same time. This approach helps you have less total debt to pay off over time. 

Make a list of debts from smallest to largest. Pay off the smallest debt, and — boom! — you get a win. That progress should energize you to keep going, like a snowball rolling down a mountainside. 

Save for the unexpected — and the expected 

Make sure you have enough money in your savings account for emergencies, says Fernández Paulino. This is what you will spend "if your tires go out or you have a family member who needs a flight back home." 

Save at least three months' worth of your monthly expenses, says Fernández Paulino. "Add up your fixed and variable expenses and your debt payments. Let's say that's $2,000. Then save at least three months of that, which would be $6,000." 

You'll also want to save for "upcoming planned expenses," she adds. "We know every year there's going to be birthdays, anniversaries, travel. So save little by little every month." 

If you are having trouble saving for an emergency fund, consider "increasing your income so you have more money available to you," she adds. That might mean looking for a higher-paying job or starting a side hustle: tutoring, babysitting, teaching piano or making jewelry. "Look at the skills you have that you can monetize so you have the extra cash flow." Don't forget to 

— and consider how that income will affect your taxes. 

. These higher interest rates allow your money to grow even faster due to compound interest. If your current bank isn't helping you grow your savings, consider other options. 

, like 401(k)s, Roth IRAs and brokerage accounts to make sure they're on track. Look at your: 

 If you have a 401(k), see what you're contributing per month or paycheck. Maybe you've gotten a raise since you set up the plan; consider increasing your contributions.

 Make sure you're investing in funds with lower expense ratios. "The lower the expense ratios, the less fees" you have to pay, said Fernández Paulino in a 

. You'll find those listed for individual funds under the term "expense ratio."

That's how much money you're earning on your investments. You can find your rate of return on your account statement or through the online portal for your brokerage firm. 

Fernández Paulino says to compare your rate of return with that of the S&P 500, which is a stock market index made up of 500 of the largest publicly traded companies in the United States.

If your investments are doing about the same as the S&P 500, Fernández Paulino says, you're probably in a good position. If not, you'll want to rebalance your portfolio. 

The audio portion of this episode was produced by Audrey Nguyen. The digital story was written by Malaka Gharib and edited by Audrey Nguyen and Meghan Keane. The visual editor is Beck Harlan. We'd love to hear from you. Leave us a voicemail at 

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