You’re in the right place if, like many people, you have ever felt that you can’t seem to save money or don’t really know what budgeting is. As the economy is what it is, people are finding it difficult to keep up with their daily expenses. But these are not drastic changes, rather they create awareness and can lead to more savings over time. Budgeting is the key to saving money. Get more info?

First, let me say that I will not tell you what to do or how to spend your money. That’s because budgeting has no purpose and most people find it annoying to have financial gurus yell at them about their finances. I want to give people practical tips to recognize patterns in their spending and areas they can cut back. First, create a budget and separate it into columns. Column 1 represents the essential expenses while Column 2 is the optional expenditures. Clearly, column 1 contains items like car or house payments, gasoline, food bills, phone bill, etc ….

Column 2 will allow you to see where your money is going. People often realize that they spent too much money on gas, bought too many clothes or ate too much out. You may not be interested in the columns and would rather go straight to your bank statements. Use a highlighter to mark down all purchases that could be eliminated or reduced for the moment. It’s amazing how much you could save by highlighting your expenses.