A study called "Secrets of thrift", sponsored by CashControl, shows that only 15% of people earning money actually manage to put something aside every month. A similar percentage think that the savings are important, especially if we think about the economic environment we live in.
Let’s face it, saving money is not that hard, and everyone can come up with some ideas that might enlarge your bank account by not wasting every budget you have. The most important step towards this goal is to keep track of your income and expenses. Once you manage to follow all the income and expenses you have, you can make modification to your habits in order to optimize the expenses, thus to save something at the end of the month. You need to take into account all the money you receive: salary, bonuses or allowances, vouchers, allowances or income from other activities. So you can get an idea of the money you have available each month. Sure, it may seem like a pain and a time consuming activity to perform all these tasks, but hey... we live in a world of tech where everything is one click (or touch) away. There are plenty of apps that you can install on your smartphone that can do the job for you. All you have to do is enter your expenses and it will return advanced reports and trends. You can try Manage Expenses Free to get an idea of what I'm talking about.
You can use all these results to identify recurring monthly expenses such as rates, rents, taxes, insurance or subscriptions. Based on those results, you need to establish a list of variable expenses and divide them into categories: large/often investments and rare investments. At the end of the analysis you will find which category is draining your budget and where you can perform adjustments. Do not forget to take into account the costs that occur rarely, such as holidays or gifts.
By using such apps, you will also be able to establish budgets. Keeping track of your expenses will help you see where the money are going and where you could cut cost. Once you’ll have an objective idea about your spending habits, you can certainly make small adjustments that could make the difference in the long rul. Setting a budget limit is important, especially for the area that seem to “eat” all your finances.
By using an advanced system to manage expenses, you will also be able to identify areas where it is more easily to reduce costs. We like excesses, and find them is the first step toward limiting them to a reasonable budget. You're spending too much on dining out? Maybe you can decide to cook at home few nights a week or you can decide to have lunch in other affordable locations. That’s only an example, but you got the idea. You don’t have to give up your favorite activities all you have to do is keep track of your expenses. That’s the first step towards saving money. From there, you can make your own recipe that will allow you to enjoy your favorite activities while keeping something