You Need A Budget

If you want to have more money in your pocket, and who doesn't, then you have to have two things, a budget and self-discipline. A budget will be ineffective if you refuse to stick to it. It is a tool for setting goals, and establishing boundaries in order to meet those goals. Most people spend more than they earn, and end up living paycheck to paycheck, stressed out because they don't know if they'll have the money to pay the next bill. This is no way to go through life. You need to know where your money is going, in order to make your money work for you. Before I had a budget, I had no idea what I was spending on eating out a month, or groceries, or entertainment. Once I started tracking these expenses I realized just how much money I was wasting. Now I can still do those things, but just by cutting back a little on my spending, that extra money can be used to pay down my debt.

There are tons of options when looking into setting up a budget. I use http://www.mvelopes.com/ which is an online personal finance and spending management system. It updates the old system of labeling envelopes for your expenses and putting a portion of cash in each one, then when you needed to make a purchase, the money came out of a specific envelope. Their software works the same way only, instead of having all your money in envelopes around the house, your envelopes are on the web, and your money is safely in the bank. So when I go get $20 in gas this afternoon, I'll come home with my receipt, log in to my mvelopes account, and take the $20 I've spent from the envelope labeled gas. If I have $100 set aside for my December gas expense, this will then leave me with $80. It sounds basic and it is, but knowing exactly where your money is going will do wonders for your finances.

If you're interested you can try it for free for 30 days by going here.