Create a Personal Budget

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Carry a small notebook and write down every purchase you make for one month. Don't forget those stops at the convenience store. You may be surprised to find out that all those little purchases add up to big money! It is much easier to save money if you know where your money goes in the first place. You probably think you already know, but if you take the time to actually write it down you might be quite surprised.

If you get paid every week then you should put at least 1/4 of the total amount you pay by check every month in your bank account to cover your bills. Anything over this amount that you put in the bank is savings, it's best to put this in a separate account. Keep the rest in cash for your weekly spending money. Remember when it's gone, it's gone! The money in your account is to pay your bills.

My son gets paid every two weeks and he has a different method. He pays the rent out of the first check and spends whatever is left over. He makes the car payment, insurance and utilities with the second check, then he has no money left over. Ooops time to call mom. This method doesn't work! You need to split your money evenly between paychecks and save some for those unexpected emergencies.

Look for ways to reduce your bills. The television and air conditioner are the two largest consumers of electricity. Don't leave your TV on when you are not using it. Set your thermostat a bit higher at night and when you are away in the summer. Do you have a lot of extra options on your telephone? These add up quick and you may want to consider getting rid of them? Do you really need call waiting and caller ID?

Check the details on your car insurance. A higher deductible can reduce your payment, but you better make sure you can cover that amount if something happens. Do you really need towing and PIP? Try an on-line quote service to see if you can reduce your current auto insurance rate.

The place you can save the most money is with the everyday things you spend cash on. That is why it is so important to write these down for one month and see where your money really goes. This nickel and dime stuff really ads up. Buying fast food every day is something most people can cut back on that makes a real difference. The chart above shows over $100.00 a month being spent on cokes and eating out. That is $1200.00 a year, enough money to buy a new computer, a TV and stereo or make a down payment on a new car. Save your money, loose a few pounds and buy something nice instead.

Why save money? I thought the whole point of working was to buy things I want! I can buy it now and pay later, that's the American way! Use credit but do not allow yourself to fall into the debt trap! I'm sure you have heard the old saying "It Takes Money to Make Money." We all want a better income but there are only so many hours in a day. Don't make the credit card companies rich, put your money to work making more money! It is easier than you think, just $25.00 a month will make a good start. Find out how to get started now!

If you are looking for some software to help keep track of your money take a look at MyBudget 2.0. You can purchase it online for immediate download. .Click here to check price.

Debt Analyzer can help you reduce and eliminate debt. Debt reduction is illustrated through a debt reduction schedules, timed debt elimination or through loan consolidation. Up to 50 debts can be processed at one time.