Tips To Save and Budget Your Money

Tip One: Write Down All Of Your Expenses

Keeping track of your expenses will allow you to see how much you spend. Many people spend without thinking about the amount. It starts with spending $2, then that small amount starts to add up after a while and before you know it, the $2 expenses turns to $20. Record all of the things you spend your money on and separate it into categories such as your car payments, phone bill, miscellaneous expenses, and food.

Tip Two: Budget Yourself

Once you have an idea of how much you spend per month, you can start to organize your recorded expenses into a practical budget. Estimate how much you make per check and know how much money you want to set aside each pay period for each expense. Your budget should frame how your expenses measure up to your income, this allows you to plan your spending and avoid overspending. I recommend cashing every check, then labeling envelopes with the name of the expense and after every time you get paid, put a desired amount into each envelope. This makes paying bills easy and convenient. If cashing the check is too difficult, the option of paying your bills online and with your bank, is still available. If you prefer digital banking and direct deposits, then I would recommend an electronic application, such as a budgeting program or online calculator that helps the user sort out expenses and payments. Utilizing this will help separate your bills from one another, that way you can differentiate each bill payment.

Tip Three: Do Not Spend Unmindfully  

Try and spend less on things that are not necessities. If you know you do not need it, then do not buy it. Have an envelope that is dedicated for unnecessary spending and only use that money towards that expense. For instance, I tend to spend a lot of money on eating out even though I have food at home. Eating home cooked meals has saved me a lot of money ion the long run. You must decide on your priorities and find ways to cut expenses.

Happy spending....and saving!