4. Create a budget and remove any extraneous items
If you don’t already have a budget, putting one together is a great idea. The idea of budgeting might conjure up feelings of lack or scarcity, but in reality, budgeting is just a simple way of you telling your money where you want it to go.
A good place to start is to take a look at your last month’s expenses from bank or credit card statements. To organize your expenses, you could use a paper budget or an Excel spreadsheet. You could also use an app like Mint to budget your expenses. You’ll want to create categories for each expense in order to set a limit for that category, and also list your income. Be sure your budget never exceeds your income — if it does, there might be some items you’ll need to cut.
If you’re finding budgeting on paper or computer doesn’t work for you, you might consider using the envelope method — an old-fashioned way of managing money. To this day, many people still use the envelope method to manage their money and keep their spending under control.