It’s the beginning of a new year, and that means that many will be setting new year’s resolutions. One common resolution for people is to save more money. That’s a great goal to have, but it’s not going to work unless you set specific goals to help you save.
Creating a budget is the best way to ensure that you are able to save money this year. So, how can you go about doing that?
The first step in creating a budget is to set down and tally up all of your monthly expenses. This includes your rent/mortgage, utilities, credit card bills, gas, groceries etc. You also need to factor in other expenses such as eating out, shopping, etc. When creating a budget, many people make the mistake of leaving their hobbies, etc. out of the equation. It’s essential to factor in these things as well, or you won’t have a true sense of your monthly expenses.
Once you’ve figured out where your money goes each money, see how much is left over (if any). Then, think of places where you could save. For example, if you notice that you’re spending a lot of money eating out each month, you could save money by preparing more meals at home. Or, if you spend a lot of your money on groceries, you could look into coupon apps to cut costs.
The most important thing about a budget is sticking to it. If you’ve allotted a certain amount of money to go towards groceries, gas, etc., stay to that amount as closely as possible. Also, be consistent with the amount of money that you plan to set aside for savings each month. Lastly, add a cushion into your bank account for unexpected expenses such as doctor’s visits, car repairs, etc. These sorts of things are always bound to pop up, so it’s best to have some money already set aside for them when they do.
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