3. 1. Track your cash flow
• Choose a method of
recording expenses
• Use a computer or just
simply pen and paper
• Keep a budget or goal in
mind, and work your
way to it!
4. 2. Make a Budget
• Find maximum
amount of funds to be
spent in a month
• Put aside parts of the
budget towards
specific goals:
Travelling, Retirement,
etc.
5. 3. Don’t bring the money home
• Arrange for all your
savings to go straight
into your 401(k), IRA, or
bank savings account
• This makes it difficult to
spend your money
easily, which will force
you think about saving
the money instead
6. 4. Analyze your purchases
• Make sure you
differentiate between
necessities and wants
• Cut down on
frivolous, extra
spending
• Make sure purchases
are beneficial in the
long-term
7. 5. Invest your savings
• Make your savings work
for you: invest them, so
that they gain value
over time
• Develop an investment
plan, and make sure
you review it annually
8. The end
result?
• You can save up
to 20% of your
income annually
• Finances will be
well-organized
• Investments may
even give you
extra money!
For sources, click here.
