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How Can I Budget To Save My Money?

03/14/2012 04:55 PM ET

How Can I Budget To Save - Learn how to take 20% of your paycheck each month and budget it toward your savings account. If you don’t do this, you are causing yourself grief and financial instability. You must always pay yourself so that you’ll have money for emergency expenses and retirement.

If you want to know how to put funds away, you have to be willing to give up a few things, or you will fall into financial ruin. You should be able to put $1,000 away each month, if you have an average income, but this will require sacrifice. This might even mean a lower standard of living, such as with housing, to put away $500 from each paycheck.

To get started, all you have to do is create a budget with goals and follow it. This might mean not eating out every night, and probably means going to the movies twice per month instead of once per week. There are a few ways you can save your cash.

First, you must write down everything you pay each month and identify what you need to survive. For example, do you really need those premium movie channels that you never watch? Try to identity and eliminate luxury services that you don’t really need.

Now you need to review your goals for each week. Examine your bank statement and identify areas where you spend money that is not included in the budget. You can reduce your monthly overhead by canceling your Internet service and using the free Internet at the local library.

The goal here is to keep your expenses to a minimum. All you have to do is spend less so that you can free up more cash. The idea is to get more money in, less spending out, and learn how to keep it that way for years to come.

Most people waste money when they smoke or dine out. Set a budget, and stick to it, if you want to save. You will be rewarded, and it will pay you for a chance.

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