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The rich didn't make their fortunes with frivolous spending. Get smart about money with these saving and budget tips.
You Will Need
- Ability to add, subtract, multiply, and divide
- Bank or credit union
Add up income
Add up all your income.
Divide by months it took to earn
Divide the total by the number of months it took you to earn it. The result is your monthly income.
Add up monthly expenses
Add up your essential monthly expenses, like food, rent, transportation, and personal necessities.
Add up nonessential spending
Next add up your nonessential monthly spending.
Add up expenses
Now add up your expenses, and pray the total is lower than your monthly income. If your expenses exceed your income, you’ll need to cut back on nonessential items.
Stick to numbers
Once your numbers are set, stick to them! Discipline is the key to living on a budget.
Take public transportation or carpool
Take public transportation, or carpool with friends to save on gas. Walking is free, and it’s great exercise!
Be frugal. Stop buying brand name clothes and fancy foods. Stop drinking lattes. Don’t order takeout.
Buy anything you can secondhand. Thrift stores often sell household goods and perfectly good used clothing.