How to Save Money Every Month

Do you feel like you are controlling your money or is your money controlling you?  Do you feel like you are working hard and getting nowhere?  Is your money escaping faster than you can make it?  Do you want to know how to save money every month?

There are many steps that you can take to control your personal finances and make your money do what you want it to do; rather than money running your life.  You can understand where your money goes and how to save money every month.

We are going to start with the very basic of steps that you can take to start taking control of your finances, understand where your money comes from and, more importantly, where it goes to and how to reduce how much you pay every month.

Click here for your free Personal Budget Worksheet from Microsoft

Step 1 – Know what money you have coming in

The first and most important step is to make a list of all the money you have coming in.  Include salaries and any other income that is paid to you on a regular basis.  Now, you should have a list and a total amount of money you have coming in every month.  There are ways to improve the amount you have coming in but that is another post altogether.  By knowing how much money you have coming in and going out you will learn how to save money every month.

Step 2 – Know where your money goes every month

Look at your bank statements carefully.  If you have no idea what your bills are at this stage, your statements will  help you.

List all the payments you have going out every month.  Include household bills – mortgage, gas, electric, water, health insurance, home insurance, auto insurance.  These are usually set amounts paid to another company every month. Make a list and total them up.  You can pay less than you are currently and this can show you how to save money every month.

List what debts you have – store cards, loans, credit cards, and any other debts you have.  These are temporary debts.  Which means that once you have paid them, you have more money left in your pocket.  Meanwhile, there are ways to reduce your monthly payments and still pay off your debts.  You can learn how to save money every month to spend on things you really want.  What is the total amount you are paying out on your debts every month?

Essential spending – what do you spend on food, travel, auto fuel, and anything else that you really need every month – to literally survive and work.  What is the total amount?

Luxury spending – how much are you spending on luxuries – things that you could really do without.  How much have you spent?

Add up each of the four totals and this will give you a total amount of monthly spending.

Step 3 – Your personal financial situation

Now take your amount of income and minus the total amount of outgoings.  What are you left with? Very little?  Are you spending more than you have coming in?  This is your personal financial situation.

Do not panic – with some few easy steps you can change that.  The ideal situation is the biggest gap possible between your income and outgoings – which is how to save money every month.  It is easier to change your outgoings than your income; so that is the first step.

Step 4 – Change your outgoings

Start shopping around for your household bills and debt payments.  There are a number of companies out there that want your business and are willing to offer you lower payments or lower credit payments to get it.  Make the most of their offers!

This does mean searching the web for better deals.  They take all the hard work out of finding ways to reduce all your monthly outgoings.  An easy first step.

Step 5 – Make a buget

Make a budget of what you plan to spend on your outgoings every month and stick to it!  If you find it too easy to put purchases on your credit card without thinking of your budget then  – cut up your credit cards.

Why not try a pre-paid card – they are different from a credit card.  You can put money on the card from your bank account and then use the card for purchases.  The great thing about this card is that you can only spend the money that you have put on the card.  It will not let you buy anything that you actually cannot afford.  Makes you think before buying and takes the temptation out of spending.

One such card is the RushCard.  Click here to find out more details.

The first step to learn how to save money every month is to be in control of your finances.  Why not take control today and learn how to save money every month.