Are you one of those people who find themselves scratching their heads wondering where all their hard-earned money went? If you are, how are you supposed to know if your spending far exceeds what you are earning? No matter how you look at it, spending without a budget of any kind is a recipe for disaster. Without a budget, you will practically have no control over what you spend. Creating one, on the other hand, do not only give you such control, but also help you to decide how your money should be spent, pay off whatever debt you have, save some money by knowing which expenses to cut back and plan for the future.

If you want to create a monthly budget but have no idea where to start, here are some tips that could help you out.

One of the first things you must do is to categorize your expenses.  It is always advisable to start with major or big categories before breaking them down into smaller ones.  Once you have listed down your expenses, two separate budget lists must be made. One of those lists should enumerate the essentials such as mortgage, utilities bill, credit card bills and groceries, while the other should list down extras that include your morning lattes at your favorite coffee shop, fancy furniture or toys. With all your expenses sorted out, look at the lists thoroughly and see which expenses are flexible enough to be cut back. Highlight the said items so you can clearly identify them.

The next step is to estimate how much you are actually spending in a month. For this, you may need to gather whatever receipts you can. Looking through your checkbook will also help. Any kind of record of your spending can help you track how much of your money goes into essentials and the extras.  Put the estimated amounts right beside each item on your essentials and extras budget list. When you add them up, it would be wise to do it separately so it would be easier for you to make the cuts, should they be necessary.

Once you have the figures, subtract from your monthly income the sum of the essentials. Should there be any money left over, subtract the entire estimated cost of the extras. If you still have money after deducting both the essentials and the extras, then you’re good. You’re living within your means. To make things better, you can use that money to set up a savings account or invest it in the market. For best results, consult a financial planner.

However, a negative difference should tell you that your spending is in excess of your income. In this case, the logical thing to do is to seek which of your expenses should be cut back. Your extras should be the ones to take the hit. That means you will have to spend less on coffee, cigarettes and other indulgences that you can actually live without if you put your mind to it.

Once you have a monthly budget, adhere to it strictly, and you’ll be fine.

 The world economy may have recovered a bit, but we are far from being out of the woods. In such an economic climate, we still need to be a bit more careful when it comes to spending. We need to save money as best we could. Most of us, however, see saving money as synonymous with making sacrifices. More often than not, saving money tends to mean that you will have to give up certain indulgences that you have been used to all your life. Still, there are painless ways for you to save money painlessly, without having to live without the things that you like. Here are five of them.

1. Keep your shopping impulses in check.

Whenever we go shopping for anything, we tend to pick up stuff that catch our attention for one moment, but are not really that necessary or even desired in the long run. Some experts say these impulse buys make up approximately 20% of our purchases. Imagine the money you’ll get to save if you just make a shopping list of the things you need and want and stick to it.

2. Save coupons.

You may have in the past mocked people who diligently collect coupons. It’s time you changed that attitude. Since there are now coupons for groceries, clothing, restaurants and just about everything, it is safe to say that they definitely allow you to save a lot of money in the long run. This is a painless way to save money, unless you find the small chore of cutting these coupons from newspapers and magazines torturous.

3. Eat healthy.

Steak dinners are delicious, but they also happen to be expensive. Worse, they are, in the long run, dangerous to your health. By eating less of these costly and bad cholesterol-filled foodstuffs and replacing them with healthier fare such as fruits, vegetables and whole grains, you save money on health insurance and medications. Best of all, you’ll feel better and be more energetic.

4. Pay your bills promptly.

Paying your bills on time and in order always leads to a good credit score. With a good credit score, you will be able to get better interest rates and repayment terms on your car loans, mortgage and credit card bills, among other things. If you think about it, all those savings by getting and maintaining a good credit score could easily translate to tens of thousands of dollars in savings in the course of a lifetime.

5. Be a little less brand-conscious.

If you’re someone who were raised in a household where name brands are the norm, then you might think of this suggestion as somewhat of a sacrifice. However, just think of the money you can save if you switch to brands that are less popular or high-end but are just as useful or effective. Take for example the lines of foodstuff that many grocery stores are now launching as their own. Typically, these bargain brands are a lot cheaper than the name brands you are used to. However, they taste just as good. Perhaps the fact that they are often made by the same companies that churn out those name brands has something to do with it.