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Saving money - Where to start?

In this article you'll find a simple budgeting tips that will help you to stay in balance and find out how much money you can transfer for savings and investments.

There are 3 main expenses group in our personal budget:

1. Fix expenses - rent, electricity, loans, etc...
2. Variable expenses - eating out, movies, gifts, etc...
3. Savings - investments and savings

In different words:

1. Fix expenses - Your monthly payments.
2. Variable expenses - Daily and changing expenses.
3. Savings - What's left in your pocket after 1 and 2

Start saving - Find your daily limits

The first thing you need to find out is you daily spending limit.
To do that you'll need to create your personal budget.
Use the Budget5000 free budget planner and create your personal budget.
Now, you need to find out how much money you can spend everyday on variable expenses. To do that, you'll need to calculate your fix expenses costs and learn how much money you should put a side every month for the things you can't do without.

Don't worry, Budget5000 will calculate it for you.
Just go to the Reports tab in your account and you'll see it on the first diagrams (expenses group pie chart).

Let's take John's budget for example.
John's monthly income is $5000 and his fix expenses are $2000.
So John have $3000 to spend on variable expenses (eating out, allowance, movies, etc...) every month. That's $100 every day.

Now it's very simple, if he'll spend less than $100 a day, he will be saving money. If he'll spend more, well, his finance will get messy.
The $100 are the daily spending limit and if you want to stick to your budget and save money, you must keep your daily spending limit in mind.

Find money for savings and investments

If you want to make sure that you are sticking to your budget, you can visit the ATM every week and withdraw the amount you need for the next 7 days (In John's case it will be $700). This way you'll always know if you are stickng to the budget.

Sticking to your daily spending limit it's a simple method anyone can try.
It can't replace savings plans, savings accounts and emergency funds but if you don't have any savings plan, it will help you to find the extra money in your budget for savings and investments.

Good luck,
The Budget5000 Team

Read more about high interest savings accounts:
High interest savings account



















If your credit card doesn't work anymore and the debt collectors are knocking at your door -
It's probably a good time to start budgeting and get your finance under control.
Start budgeting with the FREE budgeting software
Create your budget in minutes, control of your personal finance and start saving money.