Create a Budget


One of the most important things you can do if you are looking to save more money is to create a budget if you have not already done so. It's hard to save money (and decrease your debt if you have any) if you don't know where your money is going every month.

Some people don't bother creating a budget because they think it is going to be too hard or time consuming but creating a budget is actually really easy.

The first step is to figure out your monthly income - your net income (or disposable income). This is income you get to spend every month after things like your taxes, health insurance or 401K are taken out of your check.

Next is the not so fun part - figuring out where all of your hard earned money is going every month. This is where you will need to add up all of your monthly expenses and subtract those from your monthly disposable income. Some of the things your monthly expenses may include but are not limited to are:

house payment or rent
water bill
electric/gas bill
phone (land line and/or cell)
car payment
car insurance
home insurance
household items (examples: toilet paper, shampoo, etc...)
gym membership
entertainment (streaming services, cable, going out, etc...)

The above list is just some of the examples but will be different for each individual. You also have to keep in mind expenses like medical and dental. Also, car or home repairs and holidays and birthdays.

Now that you have added up your monthly average for your expenses you get to subtract those monthly expenses from your monthly disposable income and see how much (if any) money is left over every month. If your expenses exceed your monthly disposable income, then it might be time for some changes.

If you find that you are falling short of money every month, you may have to make some changes like not eating out, canceling some memberships, or maybe even finding a less expensive place to live (or getting a roommate).

Over time, if you really take control of your finances, you should start to acquire some savings and see all of your hard work pay off.