Tip 1: Itemize

The goal in saving money is not to go without; it is to substitute. Spending money fulfills a need. Simply vowing never to waste money again will never bring you closer to your goals. Instead, find less expensive options that fulfill the same need.

In order to do that, itemize your monthly spending. I used Microsoft Excel to itemize my spending. Writing everything down in categories also works. Although this step is boring (yawn), it is crucial to the next steps that I am going to share. Without knowing what you spend every month (at least an approximate) you cannot begin to know where to save money.

REMEMBER: Every dollar that you save is a raise at work! If you save $20 by eating at home one night, you just got a $20 raise!

If you know Microsoft Excel well, you can try out my expenses template. I uploaded it onto Google document.