Step 1 – Budget.  Plan how much money you are going to spend each month.  Don’t forget to include the small things, such as shampoo, toothpaste, toilet paper.  It’s up to you whether you include these in your groceries budget or make a separate category for them, but you should plan on spending money on these types of items.

Step 2 – Stick to your budget.  Do not, under any circumstances, spend more money on things like eating out or going to the movies than you budget yourself each month.  If you do, you will spend everything you have and never save anything.

Step 3 – Repeat steps 1 and 2.  You will save money if you handle things this way.  Do not spend more than necessary.  If an unexpected expense arises, you should be able to work it into the budget.  If you cannot follow these guidelines, you will never pay off your credit cards and you will never save enough money to do things that you want, such as travel.  On a positive note, if you do follow these steps, your credit cards will be paid off in less than 2 years and you should still have money left over.  Remember to follow your budget!