Create a monthly budget and stick to it
If you are solely dependent on your salary, you have to do all you can to stretch every last rupee. A monthly budget will help you plan your expense so that you are aware of your sources of income and expenses. Without a budget, you in all probability would have been spending money on non-essential items, which at the end of the month. If you always find yourself taking the help of credit cards to cover your outstanding expenses, you need to take a relook at some of your expenditures. Here's how to do it:
Assess your monthly income - Figure out exactly how much you're bringing in each month. Make a close estimate of how much you earn a month.
List your fixed expenses – They are those which stay roughly the same each month. They include car insurance, car payments, health insurance, phone bill, etc.
List out variable expenses - These are the expenses that fluctuate from month-to-month
Subtract your total fixed and variable expenses from your total monthly income. The amount that's left over will come under your savings.
Review your budget every month. Each month, go over last month's budget to see how you did.
