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People do often make it their new year’s resolution to try to find ways of saving their precious money.  It is so easy to make a plan but the reality of implementing that plan is not so simple. Do not get me wrong since saving money is not an impossible task it just requires a solid plan through careful planning.  With a little bit of practice and advice you should be able to start saving money.

Steps on How to Start Saving Money

• Start by setting realistic personal goals. It is easy to maintain and stick to your budget if you have a specific financial goal in mind. Start simply by having short term goals such as completing your house payments or have a long term goal such as save for your retirement.  Establish a time frame for your specific goal like for example you want to own your own house after 3 years.
• Time Frame: Make a list of how much you are willing to save each week, each month and each year for that goal depending on your present financial situation.
• Income: You must write down the amount of money that you earn in a month which includes your monthly salary (after taxes) and other sources of income such as additional jobs.
• Expenses: Now that you know how much you earn calculate the amount of money that you spend in the same period of time. Keep a record that specifies how much each expenses and what goes to where.
• Calculate the excess: Subtract your monthly expenses from monthly income. The left over can be set aside for savings. If you find out that your expenses are bigger than your total income it is time to reduce your expenses.
• Keep Records: Keep a record of your expenses, income and savings in a ledger for easier updating.
• Create Savings Strategies. If your surplus income is not sufficient you can find ways of saving money to reach your goal.
• Keep a monthly expenses record. Go through the expenses and look for ways of cutting them down. Little things do add up. For example you save on your daily coffee allowance which can cost you $4 per day/$20 a week/$80 a month or over $1,000 a year. You can decide to make your own coffee at home instead. The same goes to for expenses related to food and so on and so forth.

With the present economical situation in the country and the world in general it is good to keep your spending under control. It just needs to be simplified for easier implementation. One thing about budgeting is that it is just comparing your income versus your expenses. As simple as this may sound, this is the key to being financially stable.

Regardless of where you stand right now things will just get better no matter if your present condition is bad, it can be made better and if you are doing good right now, it would be good not to be sidetracked in your financial success.
For anyone whose expenses exceeded his or her income, you are not alone.  What your job is to start cutting down on unnecessary expenses and start saving for your future.

Make a list of your expenses. Financial computer programs can help you analyze your check and credit card payments but they cannot cover everything else. The simple solution would be to keep track of your expense record in a ledger or notebook that you designate for this financial planning purpose. Begin recording your expenses on the first day of the month. Make seven columns on the first page (designating a day of the week for each column). Record the date. Record each daily expense that you make; be it by check or cash. After a week on the next page make another seven columns which will be for the following week. Do the same things all over again, until you reach a month’s worth of expenses. You can do this for the next three months since some payments that you make is good for quarterly expenses.

This does not complete your financial assessment, you must also add up your monthly income. On a blank sheet of paper list all the jobs that you have, including your other income sources such as bonus pay, dividends, alimony or child support, and pension/ retirement income. Next to your source of income, list your net income (what you make after deductions are taken out).

After you keep track of your income and expenses for several months, you are now ready to make your budget. If your expenses surpass your income, you will either try to look for side jobs to support these expenses or decrease your expenses. The key is not depriving yourself with things that you really need.
It is better if you categorize your expenses: home, food, child care and education, clothing, self care, health care, entertainment, transportation, taxes, insurance, savings, investment and pet care. Always review your budget and make necessary adjustments. If you are overspending on one category it is time to trim it down.

If you got debts to pay you need to consider making larger financial changes. For example you can trade in your new car for an older one. Think about what you value the most. And lastly since there are so many things that happen in life that takes you unaware better be financially prepared rather than broke.

Being financial responsible for your expenditures is a learned skill. In a time of financial turmoil more and more people are living in austerity. Some may be changing their life style whilst others are paying their debts. Some financial plans project your financial future by calculating how much money you need to save each month so that you can be more financially stable. These plans might be helpful but in closer inspection where do you exactly get the extra money to save for your retirement later on?

Here are some reasons why your personal budget might fail:

• Failure to prioritize which bills to pay first
• Failure to include your weekly, quarterly and annual expenses
• Failure to budget for incidental expenses
• Failure to curb spending when expenses go beyond your income

Personal budget enters the picture. When you think of budgeting you often think of ways to cut corners so that you can save for your future goal. The secret to a more attainable budget plan is to know first where you are financially speaking. If you are in a relationship, you need to have a one on one talk with your partner so that both of you can talk about what specific budget technique you need to adapt from now on. Know your monthly income after tax to get your net income.

If you feel that you cannot make your own spreadsheet for income and expenses then you can find these resources on the internet and download them. Gather all your monthly bank statements and credit card bills since you need to input this on the data for your budget plan. It is wiser to double check all your budget numbers just to be sure if they are correct. Creating a good budget plan takes careful planning and preparation. Three to four months of data is a reasonable basis for your budget plans.

Simplify things by creating several categories for your budget each month. It will be easy for you to manage your expenses if you know which category it falls under. Separate your monthly bills from your non-monthly bills. Establish a certain amount that you set aside for savings and stick to it.

Know what areas you can cut down your expenses. It is always wise to save for your retirement. You can invest your money in high yield savings account. From the left over money that you may have, allow yourself some kind of luxury by being able to spend on what you want to buy so that you are not short listing yourself in the process. It is also good to give to your church and donate something for charity.