1. Budget Your Money
Monitor your spending for two months by keeping a log and collecting receipts. Then segment your spending into expense categories such as entertainment and food. Once you have that information, you combine it with your monthly bills to get a clear picture of your monthly spending habits. Before you start to develop a budget, analyse your spending to find ways to reduce your expenses and free up more money for savings and paying off bills.
Write your bills into a checklist and compare that to your monthly income. As you pay bills or use up expenses, check it off your list. Make your savings accounts bills that you pay every month. Vacations, holiday spending and an emergency savings account should all get something put into them to make sure you have the money when you need it. Any extra money you have at the end of the month goes into the savings account or is applied to paying down the balance of a credit account.
Remember to create expense items for your weekly entertainment, food and gas for your car. Anticipate one-time bills each month and account for them in your budget. Do not deny yourself money for going to the movies each week, but rather you should keep track of it and limit your spending to make sure you have money for important bills and expenses.