by Gene Walden

The more we make, the more we spend—it is basic human nature. But at some point you may need to figure out how to spend less and save more to prepare for a prosperous retirement.

The first step is to figure out how much you need to save each month to reach your retirement goals. You can work with your financial advisor to determine your savings needs.

Step Two is to go through your monthly expenses and figure out how you are spending your money. If you need to save more, you should find some areas in your budget that can be trimmed. It may mean going out a time or two less each month, or spending a little less on your vacations. There may be other areas of your budget you can identify that would help you reduce your expenditures.

Finally, make the parts fit. Stick to your plan to reduce certain expenses so you can stay within your budget. That may require some compromise for you and your family, but in order to prepare for your long-term prosperity, you may need to live a little leaner during your working years.

Once you have established a budget and started putting away an adequate amount of savings, talk to your advisor again about building a diversified portfolio that will help your money grow and compound over the years ahead.