How to Budget and Save
- 1). Write down the total amount of your monthly income. Choose a percentage that you want to put into savings each month. A good starting point is ten percent of your income. You can work up to your goal in increments by increasing the amount you save each month.
- 2). Use your past receipts to average out what you spent in your different budget categories each month. For example, use the average amount you spent on groceries over the last three months to set your grocery budget. Be sure to include your mortgage/rent, utilities and loan payments in your budget as well.
- 3). Subtract your expenses from your income. Check to see if you have enough left over to meet your savings goal each month. If you do not ,then you will need to decrease the amount you spend until you can save the amount you have allotted. Most people begin by cutting their entertainment categories.
- 4). Find extra money in your budget by using coupons and shopping at discount stores. Look at each category and make it a goal to reduce your spending by up to five percent. Some categories such as rent are fixed, but you can reduce your phone bill and cable bill by reducing your monthly plan. You can save money on clothes and groceries by limiting your spending. Cut back on your water and power usage to lower those monthly bills.
- 5). Swap services with someone to save money. For example, you can swap your hair cut for doing taxes, giving teaching lessons or tutoring your hairdresser's child.
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