Try tracking your spending for an entire month. Housing, transportation, groceries, and insurance are necessities to be prioritized, but are there other areas where you are spending too much? Could your spending habits be derailing your retirement plans? Are you prepared in case of an emergency expense or change in your income? What are you looking ahead to saving for – a dream trip or a new car? Once you have figured out how much you can afford to spend on optional items, decide which of those get you where you want to go in life.