Pay off your debts first
Calculate how much your debt is costing you each month and you’ll find out that paying it off and freeing up your money is the best decision. Clearing your debts saves a lot of interest payments. Once you have paid off what you owe, it will become easier to save as you will have more money to work with.
Create achievable goals that will help you save. Long-term goals such as saving for retirement require a lot of planning. Learn how various investments will help you attain your goals.
Establish a time frame
Set a particular date for attaining your short-term goals and make sure they are achievable within that time frame. Plan your finances to know how much you will need to save to attain that goal.
Keep a record of your expenses
Your expenses largely determine how much you can save. Make a list of all the items you buy monthly then categorize them into bills, entertainment and groceries. Include even your small purchases so that you will get a real number. You can keep a small notebook with you where you can record your expenses so that you do not forget any of them.
Trim your expenses
Take a hard look at your expenses and you may be surprised to find that you buy a lot of unnecessary items. Since you don’t really need them, you can stop buying them. You will be left with more money that can be saved.
Make a budget
Once you have assessed your expenses, you should create a budget that you can stick to. A budget prevents you from overspending as you will be purchasing only those items you’ve budgeted for and not wasting money on impulse purchases.
Eat at home
Eat out less frequently and you will find out that you are spending less. Use coupons when possible as they will save you money.
Stop using credit cards
Adopt the habit of using cash to pay for items. It’s just easier to stay on budget when you can see cash going out of your pocket. Credit cards are not bad as many people think. What counts is how you use them.
Open a savings account
It is easier to keep track of savings if you put them in a separate savings account. You also get better interest on savings account than on checking accounts. You might consider putting your money into higher interest options such as money market accounts.
Sell your clutter
Gather the items that you no longer use and sell them off. You can sell them via Craigslist or eBay. You will have extra money that you can save and use it later to do something more meaningful.
Use the library
The library is a great way to save money on entertainment. You can borrow movies and the books you need free. You will find that you have more money that can be saved.
Cancel your gym membership
You can save a lot if you do your exercises at home. You can use books that will guide you through your exercises. Buy a bike and ride it in the morning before work or in the evening. This can help you cut some calories.
I am a personal finance blogger for National Debt Relief, a Debt Management Company that has helped thousands of Americans facing credit card debt problems. We help with debt settlement, debt management, and other debt related financial crisis' facing con