by 1. Keep track of your expenses. Figuring out how much you spend is the first step in saving money. Keep track of all of your expenses, including everything from coffee to snacks to newspapers. You ought to be able to keep track of every penny.
2. Make a Budget Once you know how much you spend each month, you can start compiling your recorded expenses into a possible budget.
3. Prepare to Save Money After creating a budget, create a savings section within it. Try to save 10 to 15 percent of your income. It’s time to cut back if your expenses are so high that you can’t save that much.
4. Select a goal to save for.
Setting a goal is one of the easiest ways to save a lot of money. Start by considering what you might need to save a lot of money for, such as a vacation or a deposit on a house, and then calculate how long it would take you to save for it.
5. Prioritize Your Goals After your expenses and income, your goals are likely to have the greatest influence on how you save money. Be sure to keep your long-term objectives in mind. Retirement planning shouldn’t take precedence over immediate requirements.
