Prioritize your expenses and spending

After writing down your expenses, prioritize each expense based on your needs versus your wants. Set spending limits and determine estimated costs for each expense. If additional funds are left over after all monthly expenses are paid, split the rest of your income between debt reduction and savings. Pay down high interest credit card bills and loans which will save you money over time. Use extra funds to also increase your savings – its good insurance for unplanned emergency expenses. Look for ways to reduce daily spending: take lunch to work more often and look for movies during early matinees instead of evening showings