How to Budget and Save
Without some type of budget monitoring system, you may not realize where your money goes, and you may not be able to figure out how to save when you have little or no money left at the end of the month. You can take advantage of budget monitoring websites such as BudgetTracker.com to help you get a visual picture of your spending habits.
When you are looking at how to budget and save money, there's a few basic steps to follow. The first step is to make a list of all of the predetermined bills you have each month. Secondly, you need to average out or estimate the amount of monthly expenses that vary somewhat throughout the year. An example of this type of bill is your heating or electric bill. Once you have all of the regular bills listed, add them up to discover what you absolutely must figure into your monthly expenses. Subtract that from your monthly income.
If, at this point, you already see that your monthly expenses are higher than you are comfortable with, look into ways to reduce some of those bills. Check out lower insurance plans. Look into ways to reduce heating and cooling. Reduce or eliminate some optional expenses.
The key to saving money is to know where you are spending it. For at least one month, keep track of all of your purchases. This will show you where your money is going. It is the first step in making money saving lifestyle changes. These changes may include preparing more meals at home instead of dining out, omitting the daily latte, limiting your leisure expenses and developing a strict grocery shopping habit that involves making and sticking to a list.
When you create a budget, set up a savings account for yourself. Put a certain amount of money into that account just as consistently as you pay your monthly bills. Doing this at the first of the month rather than hoping you have something left for savings at the end of the month is a sure way to save some extra money.