Sometimes it¡¯s very hard to save money. You can find yourself spending more than you earn. So it¡¯s best in times like these to have a budget.

So what¡¯s a budget?
Basically a budget helps you keep track of the money you earn regularly, also known as income (such as salary, wages, and even interest rates from the bank). At the same time, it helps you know where you¡¯ve spent your money on, or expenses. These include bills, rent, food and so forth.

Once you have subtracted your expenses from your income, this will leave you with ¡°disposable income¡± ¨C the money you can use to spend on things or save. This is important, because it lets you know what you can used the left over money for ¨C buying something you like or need, or saving for a holiday, car or house.

However, if your find that your expenses are exceeding your income, you¡¯ll either have to increase your income (by either working more or asking for more money at work) or reduce how much you spend (so cut out the unnecessary spending). However, if you find that you have more money coming into your bank account, than going out, that means you are saving.

How To Save:
Firstly, set yourself a goal in what you want to save for: a car, holiday, computer, a dress or even a house. By working out your goals and starting a regular savings plan, you can save up enough to buy what you most desire. Depending on what you want, it might take you a little longer, but if you stick to it, you can do it.

However, it¡¯s best to be careful when it comes to setting up goals. Don¡¯t be unrealistic in the goals that you set up. You don¡¯t have to have everything in life, in fact, if you¡¯re successful you can splurge once in a while. Make sure you understand and calculate how much your dream item is going to cost you.

Secondly, have some money saved up on the side for emergencies. So it¡¯s a good idea to put some money on the side in case of that ¡°rainy day¡± that comes along. This can include anything from your car breaking down or a large phone bill that you have to pay off. As a guide, it¡¯s best to keep enough money to cover your expenses for up to 3 months.

Thirdly, be wary of debts. Everyone has debts, and there are many reasons why people will find themselves in this situation (losing their job, borrowing more money to pay off things and spending more than they can afford). The trick with debt is to take charge of your debt. You can either get another job to pay it off or talk to your bank about instalment plans. And cut out the excess spending, don¡¯t spend on useless items if you¡¯re under a lot of debt, you¡¯ll just find yourself going backwards.

Finally, saving is easier than most people think. The simple trick is to start small and start as soon as you can. Set up your goals and create a plan to save. You¡¯ll notice the difference.

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