2. Automate Savings

Set a certain amount to be automatically transferred from your checking account into your savings account every month or each time a check comes in. Don’t rely on yourself to put money into your savings account or you’ll be tempted to spend it.

If you don’t see it in the first place, you’re not going to miss it.

 

3. Set Up A Budget

According to MoneyCrashers.com, 40 percent of American families don’t have monthly budgets. However, setting one up is easier than you may think.

Start by tracking your monthly expenses. Keep a month’s worth of receipts and refer to the last month’s credit/debit card history. Also, analyze your monthly bills and minimum payments. Break down expenses into categories such as transportation and groceries. You decide how broad or specific they can be.

Next, figure out your monthly income after taxes. If your earnings fluctuate throughout the month, average out the last six to 12 months worth of recurring income to get a general picture.

Finally, place this data into online software like Microsoft Excel or apps such as You Need a Budget or Mint. These apps can connect to all your financial accounts and update your budget as the numbers change. They can give you a clear, digital picture of where your money is going and where you can scale back.