First of all you need to know how much your income is.

Next you will have to plan your spending – meaning what you want to spend money on and how much. Lists are helpful, make use of them.

If you’re spending ends up being higher than your income, you might have a problem.

You will need to cut back on some expenses. When cutting back, it is a good idea to start with the things you don’t really need such as entertainment (movie tickets, eating out etc…), those designer clothes you want, but don’t need and also outings. Basically anything that can be classified as a luxury. Make a list of luxuries versus needs. Your needs include your rent, food and stuff you cannot survive without.

Other things that might be a little harder to cut back on, but that will definitely save your budget, include non-urgent expenses (things you can always buy later on), such as a new washing machine or dishwasher. The important thing is that you prepare a budget for every month, and to stick to it, as hard as it might be.

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