1. TACKLE YOUR DEBT FIRST.
It's difficult to save money if you don't have cash or when you are at the 'red line' Before making your first budget, plan an idea on how to first settle or your debts which are due. The earlier you get out of debt, the more chance you will build to save.
2. TRACK YOUR EXPENSES FOR ONE WEEK.
You don't have to keep track of your spending for days, weeks and months at a time. Keep full information, of your spending for one week, and key trends should emerge. Maybe you are purchasing too much dress, or buying from outside too much. Perhaps you’re buying too much clothing, or eating out too much. Identifying bad spending habits early on is critical, and a lot more workable than counting every cent over the long run.
3. MAKE USE OF MODERN TECHNOLOGY IT.
If you have not embraced the idea of using Microsoft Excel or any other spreadsheet, or keeping records by writing, available apps for budgeting can assist you. Some can be linked to your credit card accounts, keep a detailed record of your expenses over time, give an easy-to-follow information of what and where you buy from. This can provide ideas about savings advice based on your outcome.
4. IDENTIFY YOUR 3 WORST OFFENDERS.
Categorize your spending into groups and identify the three 'stubborn' ones. If you get the information that almost half of your monthly spending are going into drinks, clothes and movie subscriptions, for example, tackle those first. Doing this is real, effective and targets actual behaviors that come in the way of correct budgeting.
5. SET GRADUAL GOALS.
Trying to solve all your bad spending habits immediately, will only lead you to failure. Establish specific, achievable monthly goals that grow upon one another. In the first month, for example, set a plan of tracking spending and finding problem areas. In the second month, set an adequate savings goal. Know that drawbacks will happen—but don’t let them stop your progress in the long term.
6. BUY WITH A LIST.
Even if you are only going buy small item like sugar and biscuits from the supermarket, make a list. Doing this will make you pay attention to what you need and prior intention to buy. This prevents impulse buying. It will be embarrassing when you try to sneak that egg into your shopping basket. You know better!