First, you need to create a budget. I know what you're thinking, but before you can even dream of saving money you need to know where your money is going. There is simply no way to avoid it. How can you decide where to cut or find extra money to save if you have no idea where your money is going? It is not possible Therefore, it is time to create a budget.

The thing is, you do not have to do a task. In fact, many successful people spend their lives without tracking every penny every day. You can probably do it by doing the same. Initially, you should at least sit down and find out where your money is going. How much is spent on housing, utilities, food, debt and entertainment? Once you've created a clear picture of where your money is going in a typical month, you can start tracking trends and problem areas. Once you have identified the problem areas, you will have a better idea of where you can reduce and how much.

So you can use that money to apply your savings.

As you can see, the idea is to draw an image of where your money goes and not so much to keep track of every dollar that you spend all day. Yes, this can also be a useful exercise to control spending, but it is also what makes most of the people leaving the budget after a few weeks.

And Spend less than you earn.

This is the Holy Grail of personal finances, but if you can not use this secret, you can never save money. You simply have to spend less money than you earn and there is no way to avoid it. It is about cash flow.

If he earns $ 100 and spends $ 110 he is now in - $ 10. Where do those ten dollars come from? It is usually borrowed money, either from a credit card or from some type of loan. And guess what? That borrowed money comes with interest. This means that they are actually more than ten dollars in the hole. When you start doing it regularly every month and with large amounts in dollars, it is easy to see how someone can have a debt of tens of thousands of dollars, which is exactly why most people feel they have no money to save. . .

As this debt increases, you may make minimum payments each month, but this in turn means that you will spend the next ten or twenty years paying for something you could not pay, spending thousands of interest.