No matter how much money you make, the first step to saving more money is to create a budget. Budgets are easy to make- all you do is list out your expenses for the month- rent/mortgage, utility bills, insurance, car payment,gas, food- all the essentials- as well as things that you like to spend a little extra on- clothes, makeup, entertainment, video games, etc. It’s important to have fun built into your budget, so you don’t go crazy and splurge without planning! Then, you examine your expenses against your income. Any you have left over will go into your savings. (If you don’t have any left over, you need to go over your expenses and see where you can cut.)
Now, this is all good in theory. However, while I think I’m good at making budgets, I’m definitely not good at sticking to them. I’ll follow it for a month, or maybe two, and then just go back into my old ways of overspending. That’s why I was interested to read this article by Caroline at CarolineVencil.com. She has a lot of great tips on actually staying under your budget! If you have the same problem as me, check it out:
-Cutting down without actually changing your spending patterns will never work.
-Keep your budget high, but try to spend less than you need to.
-For example, if your grocery budget is $500/month for your family of five, but you only end up spending $350, that’s $150 more that can go into your savings…which adds up to $1,800 extra a year!
-Any time you stay UNDER budget on a certain expense, divert the extra to your savings!