1. Commit to track your expenses, including any punishment. Your tracking system can be anything you can access what you spend. Every penny spent writing in a notebook or small notepad on the phone or log or receipts to invest in the table. Figure out a way recorded costs.
2. Agree to see what you've spent your money. Do not go through the trouble of writing all their expenses and stop there. any assessment that you spend your money. Whatever the amount of money you make, you know where your money goes. Oprah Winfrey has said on many occasions, we review what you spend your money and made more money than most of the world. It is the second most important part of this process (which is 2 - OMG so easy!)
3. Find out what is lacking and what is needed. NEEDS clothing, food and shelter. Everything else is a need. As simple as that. therefore characterizes all of your expenses.
4. More than you take home and add up the costs. Add your spending (wants and needs). Then add the amount of money you get home (after taxes and deductions), not gross (before tax). The amount you have to work on a monthly basis. That's what you have to work with.
5. Start by reducing spending on wants. Wish are easier to examine and understand how to spend less on all the things you do not absolutely necessary. For example, companies see better prices on car insurance or find a cell phone or cheap phone provider at home. Be smart about how to save money.
6. Find ways to spend less on need. Now the difficult process of searching for your needs and find ways to reduce those costs, too. Here is the hard part - you're going to spend too much for home, car or clothes. E 'perfectly fine to spend money on some of the finest clothes, but not at the expense of debt creation. We know that the car may be necessary, but not necessarily $ 800 car note to go along with it. If you are financing a car, a high car note, you will need to be resized.
The idea is to spend less than you earn. I often say that no matter what you do is what you do with what you do. Each new year brings reflection on previous years. Now is the time for a change. Start with your spending plan. It's for you!
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