A majority of Americans are saving up to 5% each month but it is suggested to save 15% of the whole income. It is very easy and enjoyable to spend the money but much harder is to earn them and work to receive. Reality makes people to think about the future so that saving money becomes a necessary skill. As a rule, the hardest thing about saving money is getting started. The main element in realization of the savings plan is setting a goal. Sometimes it is difficult to develop the most effective ways to save money and achieve the goal.
If you have repeatedly failed when tried to save some money or even didn’t try, here are some the most important steps in the process of realization your savings plan.
1. Write down your monthly income and expenses
For one month, write down in detail your current income and expenses. For example, on the left side of the page note all expenses, list all purchases you make from the smallest to the biggest. You can also divide them into categories such as rent for the living, insurance, tuition, food, transport, clothes, travel and other. After count the total amount for each category and compare your income with an amount of expenses.