Ways to Save Money

My experiences in my childhood made it evident that money does not grow on trees. I watched my mother struggle to make money and my father work to waste money. My mother had two kids to feed and cloth with no help from our fathers. My father would spend money on cars, women, and other flashy things. Watching this as a child, I often wonder if there was a middle ground. When my father remarried and I met my stepmother, I finally got my answer. I watched her budget and work overtime so that we could live a comfortable lifestyle. She also helped my get over my fear of spending money. If I went out and bought, something I thought was irresponsible she would say, "You could have spent it on drugs, diapers or bail money". I know that may not make sense to you but it always eased my mind. She is definitely my role model when it comes to my financial aspirations. Over the years, my friends and family have said I am good with my finances. I am money conscious because I believe that people who waste their hard-earned money are being counterproductive to their own cause. Therefore, I decided to write this article to share some of my tips. Some of the tips are the same ones everyone tells you and some maybe new to you.

Develop a budget

First you should start with a setting your budget. Write down all of your revolving bills and recurring expenses. (I.e. rent, gas, hair appt, etc) I use Microsoft Excel worksheets to map out my bills. Microsoft Excel has the ability to calculate figures and display a clear picture of your finances. You can purchase or download that will serve the same purpose as Microsoft Excel. It does not matter what you use just as long as you use something.

Here is an example of a finished worksheet

Example

Example

Pay check $ 1,600.00

Credit Cards $ 67.00

car insurance $ 145.00

cell phone $ 163.00

Food $100.00

car note $ 450.00

PSE&G $ 112.00

Cable $ 149.00

Savings $ 100.00

Total $ 1,286.00

Remainder $ 314.00

Calculation for total: =SUM (D4:D13)

The D represents the column that holds the figures. The digit represents the row of the figures.

Calculation to subtract your total bills from your paycheck (Remainder): =D3-D14