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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
- Spending journal
- Personal finance software
- A Christmas club bank account
For one month, write down every single cash purchase that you make.
With the help of your spending journal and your credit card and/or debit card statements, tally up how much you spent the past month. Then subtract it from your monthly net income.
List any debts you have.
If you are spending more than you earn, see where you can cut back. Keep trimming until you’ve figured out an amount you can afford to spend each month on nonessential items like new clothes and dinners out.
Include seasonal expenses
Tally up as many annual expenses as you can (holidays gifts, a summer vacation, birthday presents); divide by 12 and add them under 'Miscellaneous.'
Review your budget every month and adjust it if necessary, even if that means allocating more to expenses and less to savings and/or debt than you’d hoped. You need to keep it realistic, or it won’t work.
Be realistic about sticking to your budget. Like a diet, a budget is meant to be blown once in a while. Just don’t use it as an excuse to ditch it altogether.