Learning how to save money is like any other education. Get a little knowledge, then practice, practice, practice. Trial and error will be the best teacher. Saving money is not something you do it is a way of life. Examine yourself carefully. Be honest in determining your wants and needs. Writing out a budget and sticking to it can eliminate those expenses that slip through your fingers. Debt can be death to saving money. Get in control of debt, or it will control you. Invest and save so that money will be a tool not a task master.

Writing up a budget is the first step in learning how to save money. Know what your income is and where every dollar will go. Having a budget is one thing, but sticking to it requires work. Keep all financial paperwork carefully organized. Some banks and credit unions offer online budget capabilities. In an electronic era where money comes and goes without you even noticing, make a point of being aware. Put things that are important to you in your budget like eating out and going to the movies. Budgets that deny a little fun money are likely to fail.

Borrowing money can seem to fulfill dreams, but in the end it can make those dreams into nightmares. The bottom line is, don’t buy something you don’t have the money for or can’t guarantee that you’ll have the money for soon. Interest can compound until you are paying hardly any of the original purchase. If you do borrow, be smart. Read all the fine print and make sure that you can stick to the terms for your own benefit. Lenders know how to make money off of you. Superior offers are made to entice you. That might be a great opportunity, or the death of your budget.

Examine yourself carefully. Most of learning how to save money will be seeing where you can change. Trim the fat from your spending habits. Find a way to get stuff for free or at a discount. Do you really need a car, satellite TV, or that fast food stop? On a budget these costs may look small, but add them up over the course of twelve months and they inflate. Find a cheaper apartment or refinance a mortgage. Consolidate debts or take a higher deductible on insurance policies. Make sure to put a little money into savings or investments. Let your money work for you earning interest.