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Written By: admin on August 30, 2009 One Comment

Summer was wonderful and even though you knew that it would be a good idea to start saving some money, you just couldn’t deny yourself this precious holiday. You spent a lot more money than you can afford and now you’re back home in your old ways. If you haven’t started already, it would be a good idea to begin a savings plan and to start taking care of your money. Here are some easy steps to help you get a hold of how you can start saving money.
1.  State the obvious
Make a list of all your income and expenses for the few remaining months in this year. When making an income projection try to be on the cautious side, and with expenses take into account that something might go wrong unexpectedly and will require extra spending. Income and expenses categories can be various, depending on your needs. But, don’t forget a thing – especially with expenses.
2. Analyse and trim your expenses
If in certain months you have a surplus of expenses over income, don’t close your eyes but realise that you have a problem. Minus needs to be taken care of and there are only two ways. In order to find the way out of minuses you have to either increase your income, which is quite impossible in such a short period of time. However it is maybe possible to come up with the money in some other way (receive a gift from somebody, sell some shares, take some money from a long term deposit in the bank, take a loan). The other road, which you should take, is analysing your expenses in painstaking details and for each, regardless of how small or seemingly insignificant they might be, making an honest analysis and see if there is a way to trim them down. You just have to be open minded and creative, and you can also use Tips and tricks section of Become Thrifty in order to get some practical ideas.
3. Make a new plan
After you analysed and trimmed down your expenses make a new plan. Be realistic and keep your head cool. The plan has to be possible to achieve. We will call this your master plan.
4. Stick with your plan
Start writing down your expenses daily in order to be able to follow how close you are to your planned numbers. If you see a significant differences in expenses as opposed to the plan, review the plan and change your master plan. However, don’t do it before at least two months have passed. Certain fluctuations are perfectly normal, it is the big picture that is important.
5. Good luck!

One Response to “Back Home”

  1. Johny says on: 10 September 2009 at 5:48 pm

    Saving is all about positive attitude

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