Simple Secrets to Save More & Spend Less

It's a tough economic time out there and it may not be getting better for some time. Watching what you spend and how much you spend is important more now than ever. For the past few years the United States has had a dismal savings rate, and many people are paying the consequences for their lack of preparation. Saving doesn't really work if you keep spending, but saving and skimping on the spending can be a successful combination.

How many of live pay check to pay check? This may not be because we don't make enough, but rather because we spend beyond our means. It is time to start to reevaluate what is more important and holding yourself accountable for those liberal spending habits.

A great way to help discipline yourself is to set up a personal budget. This budget should list all of your income streams as well as all of your expenses. For a few months track everything you spend money on and all the money you make. This will give you a good idea of where all that money is going and put into reality how much you may be spending. The next step is to create a strict budget as to what you will be allowed to spend money on. Of course the important things come first, such as rent and insurance, and then you can set aside some money for shopping or social activities. Also put in your budget what you plan on saving each month and stick to it.

Now that you have broken down everything you spend money on and set yourself up a budget, you can look into the saving aspect of things. Saving now will help you in the future and more importantly it will set aside some emergency reserves for tough times. There is a rule of thumb out there that you should save somewhere around 10% of your gross income. This is a safe number but by no means where you should stop. After looking at your budget you should have a better idea as to how much you feel comfortable saving. Be sure to make this the first thing you do every month.

Remember it's about saving more and spending less. With some self discipline you will start to see dramatic results in you bank account and might just feel a little better the next time your credit card bill arrives.