2. Understand what is necessary

Needs and wants often to plague your conscience when it comes to spending money. Fixed expenses, or expenses that need to be paid each month, such as bills, rent, or insurance should be the first category your money is allocated to. Anything else that is not entirely necessary is a want and depending on your monthly budget some of these may need to be allocated less money to plan.

3. The highlight method

Creating your monthly budget can be simple by using the highlight method. First list each expense that you have in a month including any leisure or entertainment or other non-essential expenses. Once you have compiled your list go through and use green, orange, and red highlighters to categorize your expenses. Highlight all essential costs in green. This would include rent, phone bills, car payments, electric or water bills, or any other expenses that need to be paid monthly no matter what. In orange highlight all the expenses which are not necessary but are nice to have. This would include things such as streaming subscriptions or dining out expenses. In red highlight all the expenses which are not necessary, and you can reasonably live without them. Most often these expenses are wants and include entertainment expenses or saving for vacation.

4. Know what you make and what you spend

Budgeting becomes much simpler once you truly understand how your income is allocated. Understanding how much money you make in a week and in a month can make budgeting simpler. If your income varies per month, it is important to understand this and adjust your budget each month. Staying on top of your monthly budget, especially if your income is not set, can be easy by dedicating a day at the end of each month to plan the next month’s budget.

5. Save now, spend later

Once your budget is complete, it is easy to see all the money that is not allocated to necessary expenses and think that is your spending money. The goal for each month should always be to spend as little money as possible and save as much money as possible. Not only will this goal open doors in your future that would have been closed had you not saved, but it also introduces financial stability in the event of unexpected costs or expenses. 

6. Short term investment for long term stability

Investing in expenses such as good insurance or moving can expect to hold large upfront costs. For most people these upfront expenses often deter them from making financial decisions which would save them money in the long run. For example, if you are in the market for a job and do not have a set company you wish to work for, moving states to find a job can sometimes lead to a lower cost of living in the long run. Insurance is another example. Although good insurance comes at the cost of high monthly payments, in the event of an accident these payments would likely be less than the large quantity of money that would have been paid had you not made the decision to invest in quality insurance.

7. Understand your employment benefits

Many employers offer excellent benefits to their employees which can increase the utility of their income and employment. Benefits offered often come in the form of company insurance, company phone plan, retirement wealth planning, or company stock options. Research the benefits at your place of employment to see if you could be saving money just by working.

8. Be aware of lingering subscriptions

The modern age of technology has moved many service industries online. With such easy access and simplistic purchasing many people forget about subscriptions they have applied to in the past. These subscriptions could be automatically charging your account monthly without your knowledge. The best way to combat this is to be in constant contact with your banking history and if an anomaly or charge occurs find the source and cancel the subscription if it is unused.

9. Look for additional income

The internet is a place of high commerce and has become the largest retail store in history. Not only are products sold through the internet, but services and personal brands can be commercialized as well. Although most people will not go out and become internet life coaches or ecommerce millionaires, there are plenty of other opportunities to increase your monthly income through the internet. One avenue to try is consumer surveys and testing. Companies such as usertesting.com will pay their surveyors to complete short surveys or evaluations of products for companies and receive compensation for it. 

10. Compare prices

By the age of 30 many people are habit driven. Although this can increase productivity and introduce structure to your spending, it sometimes leaves you worse off. If you only shop at one store you are at the hands of their pricing metrics. Instead, constantly compare prices of goods and services to find the best bang for your buck in any situation. 

 11. Be a savvy shopper

Efficient shopping can be the difference between saving money monthly or spending too much. The main shopping expense monthly is generally spent on groceries, but could be other things such as gifts, clothing, decorations, or other commodities you wish to purchase. No matter the form, always go shopping with a list or goal in mind. Walking into stores without a goal or list can lead to spending more money than necessary and could upset the integrity of your budget.

12. Cook more meals at home

Dining costs are often a large expense hidden by the fact that you need food to survive. Although there is no debating that statement, there are more cost-effective avenues to eat. The most important of these cost saving tips is simply making meals at home and not dining out as much. Convenience is normally the culprit in dining out, but the hour of effort it takes to make a meal can save you hundreds of dollars a year in the long run.

13. Expect the unexpected

The point of saving is always to plan for the future. Life is random. You never know when your car is going to break down or when your dog is going to get sick, but you can always be prepared for it. Financial security and saving money are the most important tactic towards stabilizing your future and being ready for whatever life throws at you!