So you want to start saving money, what do you do first?  Well, it’s easier than you think.

When beginning to save money, the task may seem daunting or even impossible, but taking those first few steps is extremely important when dealing with your long term goals, especially if you are looking to negotiate or settle outstanding credit card debt.  First and foremost, you have to evaluate how much you are spending before you know how much money you can save.  This may seem like a tedious task, however in the long run it can save you a great amount of money.

Start with a List

In order to help you do this you need to collect your receipts and bank statements and start making a list of how much you are spending on each expense every month. This is a very eye-opening experience for most people because, we forget about the money we spent going out to dinner or shopping for extra items.

Once you have monitored your spending habits, you need to make a budget for yourself and keep on track. This is also a very important step in order to help you save.  Free financial management tools that will help you easily create a workable budget are available as part of the SettleiTsoft^® system platform.

Separate Necessities from Extras

In your budget, you need to separate your necessary expenses from what you spend on extra things.  For example, your rent or mortgage payment must be paid every month and groceries must be purchased on a regular basis; whereas going out to dinner and a movie is not a necessity.  Then develop a realistic budget based on how much you spend on expenses.  Now choose an expense item such as groceries and see if this amount can be reduced.  By using coupons, buying generic brands, or buying in bulk, you may be surprised how much that grocery bill decreases.  This is just one of the ways in which you can begin saving on your necessary expenses.

After you have gone through and made a budget of your necessary expenses, you need to examine how much you are spending on extra expenses.  If you go out a couple of nights a week, try only going out once a week instead.  There are plenty of local events that are free, or maybe it would be a good idea to stay in and enjoy some time at home.  If you really enjoy going out to eat, try to see what restaurants are having deals.  Some restaurants offer half off their menu or appetizers during their slow hours; providing you a great opportunity to eat your favorite foods for a fraction of their usual price.  In order to save money you will have to cut back on certain things, but this does not mean you have to get rid of them completely.

The Most Important Thing is to Create a Budget that You will Stick to

You don’t want to make too many sacrifices in order to save; however, you need to be realistic that some changes are necessary in order to save money.  The hardest part is starting, but once you have a plan and you follow through, you will be amazed at how much money you are able to save.