You need to include your insurance, taxes or Christmas presents in your budget.
You need to set a budget before you start in order to get on top of your financial state.
It’s just a report of your income of money like your salary and the bills you have to pay like the rent and other expenses.
The best way to save money is to set a plan for your expenses.
This way you will get to write down all your revenues and expenses You may then analyze your spending every month across the following broad categories:
- Domestic bills
- Living costs
- Financial products
- Family and friends
The plan can be saved and you may later on update it whenever there are changes.
You can save your budget plan on a piece of paper or as a file saved on your computer. You may also use your online banking application which saves data from the transactions you have made.
Control your spending habits
If your every month expenses are increasing more than your stable income, then you have to know where this money is going and where you can save money. Any small amount can add up a lot such as magazines.
Record a spending diary
It’s very helpful to stop and Direct Debit for the subscriptions that expired and don’t need anymore.
Having a small diary where you record your expenses helps you know where your money is going.
Keep a record where you note every little dime you spent throughout the month. If you do that on the long run you’ll have a clearer picture of your outgoings.
It will become easier for you to save more money when you know where your spending is going.