How do you budget and save your money?

Question

How do you spend less and afford to pay your bills at the end of each month?

I'm about to start working and I would love to know how some people budget and save their money. I don't plan on investing anytime soon so please don't give me tips on investing. I just need some tips on how I can save money and be able to pay off my bills. Thank you! =)

Answer 1

the biggest key I've found is to track my money, I worry less about a budget but I write down every dollar I spend and what I spent it on. this way I can see where my money is going and where I can afford to cut back. It is shocking how fast a few bucks here and there adds up.

Set savings goals and pay them on the first of the month with your rent, like put aside $100 into savings or something, then just live like your rent is $100 higher than it really is.

Pay as much extra on any loans as you can possibly afford, you will pay them off much quicker and save tons of interest in the long run.

For writing a budget I'd say start with fixed expenses like rent, loan payments, phone bill etc, incluce savings in this category. see how much is left, then budget for variable but necessary expenses like groceries and gas, you don't know the exact amount but guess the average monthly amount. then use what's left in your monthly income for fun/luxurys

after a few months re-evaluate your budget, if you are consistently going over or under budget in one category then adjust, decide where else you can cut back or where you want to put that extra money.

Good Luck.

Answer 2

You're very smart to be thinking about this before you start working. You've already gotten some very good responses, but these are my recommendations:

1) It makes it easier to budget for the cost of utilities if you sign up for the level pay plan offered by most gas and electric companies. It allows you to pay a level average amount every month rather than paying different amounts as your usage fluctuates.

2) Make a list of your monthly fixed expenses (and include a line for the amount you will be putting into your savings). Your fixed expenses include rent, utilities, car payment, gasoline, insurance, etc.

3) Deduct your fixed expenses above from your monthly take-home pay. Use the amount left over for groceries (buy cheaper food if necessary); cable/Internet (just get basic cable and drop your Internet connection if necessary); phone service (spend less on your cell phone and land line calling plans if necessary); eating out (don't eat out often if you can't afford it); clothes (don't go shopping unless you really need something); gifts; vacations; etc.

4) Prohibit yourself from touching your savings unless it is a dire emergency -- and wanting new shoes is not an emergency. :-)

Answer 3

Don't live outside your means. If you cant pay cash for it don't get it. I mean like entertainment things or personal wants not like a car or something. Don't let credit cards eat you alive! Sometimes you have to do without what you want to pay uncle sam and all your bills. I don't know how old you are but keep your credit score clean and high. That will make a huge difference down the road. I am a christian man so I will put this out there pray to God about it and see what happens.

Answer 4

Make a chart. In one column, everything you need or want to spend for. In the other, all your sources of income. You prioritize things--obviously you need to pay rent and utilities and buy gas for the car, those get top priority. You have to eat, but you can eat home cooked food (less expensive) or eat out (much more expensive), you need clothing but you need to prioritize that, too. If you want you can put Saving in your highest priority category and then make sure thats invested in something that will get compound interest. It helps to prioritize so you can cut out the needless stuff, enjoy the frills sometimes but not as a steady diet.

Answer 5

Take a month and write down absolutely everything you spend money on.

When you have that list compiled, take a look at it and see where your money is going-- if you can cut things out, like a $3/day cup of coffee, do it and roll that into savings.

Until you know where your money is going, you won't know what you can give up or do less of to save money.

Answer 6

Contact Christian Financial Counseling, they have a program they give you free of charge by Larry Burkett and it takes you through step by step, it's great and has helped people live debt free for many years, Mr. Burkett passed away a couple of years ago but the foundation is still in tact.

Answer 7

by protecting my Investment on each occassion