Record your expenses - The first step to saving money is to figure out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip. Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount.
Make a budget - Once you have an idea of what you spend in a month, you can begin to organize and record your expenses into a workable budget. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending.
Plan on saving money - Now that you’ve made a budget, create a savings category within it. Try to save 10 to 15 percent of your income. If your expenses are so high that you can’t save that much, it might be time to cut back. To do so, identify nonessentials that you can spend less on, such as entertainment and dining out,
