1. Create a Financial Plan
Determine your overall goal. Generate a list of your short-term, mid-term, and long-term goals that are realistic and specific. Once you know how much you need to save and how long it will take to save it, you can set a specific monthly savings goal.
2. Set Specific Savings Goals
Make a budget- plan where you are going to spend your money and stick with it! You should be saving 10% of your income each month, this money will add up quickly. Before you know it, you’ll be well on your way to reaching your overall goal!
3. Get out of Debt
Make a list of your debts and sort them by annual interest rate. Debt with the highest interest rate should be the one you begin to pay off first. Pay as much over the minimum payment as you can. Pay off debt faster by increasing your income or reducing your expenses.
4. Get Control of Your Spending
Write down what you make and spend for two months. Look carefully at how you’re spending money and lose the items that are preventing you from reaching your overall financial goals. Use personal finance programs that have money management features- these will help you organize your finances and track where your money is going.