How do I budget and save my money?

Question

I am living paycheck to paycheck and I make enough money to not do that. I don't even know what I spend my money on, as I have nothing to show for it. Please help!

Answer 1

Time to sit down and make a budget - one that you can stick to. List as follows:

Monthly Budget ($40,000/annual income)

Take home pay: $2233
Less:
Savings 10% of take home: $300
Rent/Mortgage: $800
All utilities: $200
Car: $200
Gas: $100
Food: $500
Clothes: $100

Remaining Balance: $100

Other ways to save:
Bring a bag lunch to work, shop for clothes at places like Kohl's or Target or second hand shops, car pool, etc. etc.

Good luck!

Answer 2

Many people have had this problem for years. Google feed the pig, it's a campaign about saving and investing for your future retirement.
1. Save - even if it's a 5 dollars a month, find a good bank, and start saving, and do not touch the money, ever.
2. Invest - There are opportunities for small investors, and the returns in the long run will be worth it.
3. Cut back - This is gonna hurt but, you are just going to have to cut back on many things until you can get a foot hold on your financial situation. Don't buy anything unless it is absolutely necessary, I mean nothing but the bare bones. You may have to stay home while others go out to play or on vacation or whatever, you are less likeley to be tempted to spend money you don't have if you are in the house. Do not use your credit or debit cards for a while and pay off any debt you have as soon as possible.
4.Rent - If you can't afford to live where you do, move. This may put a cramp in your style but staying at home with mom or dad just till you can catch up is something you may have to endure, if they let you stay that is.
5.Employment - Try seeking a higher paying job, and you may have to work two maybe even 3 jobs for a while. You will be dead tired and your social life will be a bust, but it is only temporary.
6. Taxes - Make sure you get every penny you have coming to you back from good ol' Uncle Sam. Find a financial counselor and a good tax guy that can help give you advice on how to invest your money, save on expenses and taxes, and make the most of the money you do have.

Answer 3

You've got to get a workable budget established. There are lots of resources on the web and in books to do this, some mentioned in other answers. I think Dave Ramsey is a good place to start. They all have similar advice that you'll end up tweaking for your own situation.

But a great budget is worthless, though, unless you have a practical way to actually implement it in real life. Here's a way to do it - after you do your budget and figure out how much you can spend each month after bills are paid, here's a thought on how to control your variable expense spending (dinners, entertainment, coffees, groceries, gas, etc...) - get a prepaid debit card account separate from your checking account, load your budgeted amount for these categories at the beginning of the month, and then use the card. Don't touch your checking account.

At the end of the month, do you have money left on your prepaid card? If not, why not? Keep this up for a few months and you'll really start to see a difference in how you manage your spending - you'll know where your money is going. The benefits of this way over the cash method: 1) you've got an electronic record of your spending that you can use to figure out your spending habits, 2) you have the convenience of plastic, without the temptation of overspending with credit cards.

I heard about this system from a neighbor of mine and have been doing it myself. I've also heard of using more than one card to manage your spending in a more segregated way if that helps. I got a Visa prepaid card from Readydebit.com and it works for me. It was also mentioned in Laura Rowley's column on Yahoo! Finance recently for doing this kind of thing. Hope this helps.

Answer 4

You have some great advice here already. In addition, I suggest you pick a time frame, preferably a month, but even a week, and write down everything you spend. Don't judge yourself over what you write down, just remember that you're going to be the only one to see the information, and that you're going to use the information to make your finances better! Once you've made a list of your expenditures, you'll be able to see where your money is going, and how you can cut back!

One of the things Dave Ramsey recommends is a cash system where you budget money for different categories and put that money in envelopes marked for each category. In today's world of debit cards, that can be challenging to do, but might be worth a try, even for a month.

Good luck!

Answer 5

Go and visit your local library. They will have some easy to read books regarding budgeting your money. These books will give you some good ideas where to start and will have some sample worksheets that you can make for yourself. Also, check out the Internet for some free information. From reading your question, you can start today, writing down your daily expenses and for what reasons. You have to track your expenses and bills. Then you sit down and write yourself a budget plan. After a week make adjustments and so on. You have to start somewhere and it will take some work on your part.

Answer 6

i would write down everything you spend on a piece of paper and then you would know where it is going and wouldn't hurt for you to start saving some money every week It sounds like you need to set up a budget for every month. Try to think of do i really need this or can i afford to do this And pay your most important expenses first

Answer 7

Well... you need to track your expenses to see what you are spending on. If you have credit card debts, my guess is you are spending a lot on "Finance Charges". It is funny how you don't even realize that unless you see it!
Check out http://www.expenseregister.com , it is a free web based expense tracking application. It has some neat reporting features, might help you figure out where your money is going.

Answer 8

Here's a great philosophy learnt from some wise person, worth sharing with you: "Plan to spend some portion of your earning, don't ever save a penny from that portion, spend all that money, and enjoy spending that! And, plan to save a portion of your earning, don't ever spend a penny from that portion, save all that! Plan well!" so, get organised, plan well -- good luck, have a good time!

Answer 9

think of of it like this: the $550 in hire funds will flow in the direction of the $931 loan leaving $381 consistent with month which you're able to arise with. The $one hundred twenty in utilities you're paying now, you are able to parent on paying a minimum of that or much extra gazing the form of heating/cooling device, no remember in case you have city or nicely water, and no remember in the adventure that your electric come from a coop. ( i come across that a RECC form employer is a lot larger to have electrical energy.) What you're able to be able to desire to do now could be take as lots funds as you are able to take care of each and each month and attempt to double the quantity you pay to the credit card businesses. that pays them off lots extra straight away, then placed all of them away different than one like credit card for emergencies in elementary terms form ingredient. The credit enjoying cards could have a lots larger interest fee than the rest. i could additionally attempt to deliver in an added $25 to $50 consistent with month in the direction of the motor vehicle which would be paid off the quickest. which will decrease the quantity of interest you pay and pay it off somewhat quicker.(counting on charge you're able to make a minimum of one extra advantageous charge doing this if not extra). whilst the credit enjoying cards and the single motor vehicle is paid off, then now may be the time to start in on the own loan. Double you income case you are able to or % to. this could launch numerous funds to prepare to that $381 you're able to be able to desire to fulfill the the remainder of the loan. I additionally could propose you not eat out lots and don't purchase issues you do not %. as quickly as you pay some issues off, and have extra funds you are able to lay the extra advantageous right into a cost reductions account and seek for a house. In 6 months you're able to be able to desire to be in super shape with various issues paid off and income fee reductions. i'm in this technique now and am on the brink of build a house it fairly is been a protracted technique for us even with the shown fact that it does not sound like it fairly is going to take that long for you. solid success

Answer 10

go to http://www.daveramsey.com/ he is the best l Financial Counselor out there. Just go to the website, you can even listen to him on the radio, his website will have the radio stations